STUDYING THE MARKET FOR ONIDA WASHING MACHINES & MICROWAVE OVENS IN PUNE REGION & INVESTIGATING THE

POSSIBILITIES FOR INCREASING THE MARKET SHARE

With Emphasis on Identifying Factors Affecting

- Sales of ONIDA Washing Machines & Microwave Ovens in Pune Region, - Customer Satisfaction in Companys After-Sales Service in Pune Region, and - Consumers Preferences towards Choosing a Washing Machine & Microwave Oven,

Towards SUMMER INTERNSHIP (April 8, 2010 June 8, 2010)

At

MIRC ELECTRONICS INDIA Ltd. (ONIDA), Pune Branch

Under Guidance of

Mr. Chandrasekhar Singh

Business Manager, ONIDA, Pune Branch

Prof. R.J. Masilamani

BIMTECH

By PARUL AGGARWAL
09DM084 PGDM (2009-2011)

This is to certify that Ms. PARUL AGGARWAL, Roll No. 09DM084, a student of PGDM (Marketing) has worked on a summer project titled A Study of the Current Market for Washing Machines & Microwave Ovens - Identifying Factors Affecting Sales of ONIDA Washing Machines & Microwave Ovens in Pune Region and Investigating Possibilities of Increasing the Market Share at MIRC Electronics Ltd. (ONIDA), Pune, after Trimester-III in partial fulfillment of the requirement for the Post Graduate Diploma in Management program. This is her original work to the best of my knowledge.

Date: June 8, 2010

____________________________ (PROF. R. J. MASILAMANI)

BIMTECH SEAL

DECLARATION

I, Parul Aggarwal, a student of Birla Institute of Management Technology (BIMTECH), hereby declare that I have worked on a project titled A Study of the Current Market for Washing Machines & Microwave Ovens - Identifying Factors Affecting Sales of ONIDA Washing Machines & Microwave Ovens in Pune Region and Investigating Possibilities of Increasing the Market Share during summer internship at MIRC Electronics Ltd. (ONIDA), Pune, for the partial fulfillment of the requirement for the Post Graduate Diploma in Management program. I indemnify my research work to be authentic and original to the best of my knowledge in all respects of the process carried out during the project tenure. My learning experience at ONIDA, Pune Branch, and in the market of the Pune Region (Pune, PCMC, Kolhapur, Ratnagiri, Sholapur, Osmanabad, and Goa), under the guidance of Mr. Chandrasekhar Singh, Business Manager, Pune Branch, ONIDA, and Prof. R. J. Masilamani, BIMTECH, G. Noida, has been truly enriching.

Date: June 8, 2010

_________________________ (PARUL AGGARWAL)

ACKNOWLEDGEMENT

I would like to heart fully acknowledge my gratitude and thanks to all the people who took active part in accomplishing my project. To begin with, I would like to acknowledge my sincere thanks to Mr. Chandrasekhar Singh (Business Manager, Pune Branch - ONIDA) for providing me the opportunity to do my summer training at MIRC Electronics Ltd. (ONIDA). Without his guidance, support, and valuable suggestions during the research, the project would not have been accomplished. My heartfelt gratitude also goes to the entire ONIDA team at Pune Branch for their co-operation and willingness to answer all my queries, which made the project possible by edge. I would like to extend my thankfulness especially to Mr. Neeraj Bhat (Sales Manager, Pune Branch), Mr. Shirish Kalagi (Branch Accountant), Mr. Rajiv Govande, Mrs. Linda Rebello and the entire sales and service team of ONIDA and ADONIS for their support and valuable suggestions during these 2 months. I also sincerely thank Prof. R. J. Masilamani, my faculty mentor at BIMTECH, who enthralled my views, took out time to provide his valuable suggestions, shared his rich corporate experience, and helped me script down the exact requisites. Last, but not the least, I would like to thank all the Onidian and Non-Onidian dealers and distributors for sharing their experience in the market and giving their valuable time to fulfill the questionnaires .

CONTENTS

1. ABSTRACT.......................... 1-2

2.

LITERATURE REVIEW

2.1 Industry Profile 3-14

2.1.1 Consumer Durable Market in India An Introduction 2.1.2 Washing Machine Industry An Overview 2.1.3 Microwave Oven Industry An Overview

2.2 Company Profile MIRC Electronics Ltd. (ONIDA).15-18 2.2.1

An Introduction

2.2.2 ONIDA Product Range Washing Machines & Microwave Ovens 2.2.3 Sales and Distribution Network Pune Branch 2.2.4 After Sales Service System Pune Branch

3. FORMULATING THE MARKET RESEARCH PROBLEM APPROACH ..19-26

3.1 A Background Study

3.2 Marketing Research Problem Statement & Importance

3.3 Approach to Research

4. RESEARCH OBJECTIVES .27-28

5. RESEARCH METHODOLOGY .29-31

5.1 Research Design 5.2 Data collection from Secondary Sources 5.3 Data from Primary Sources 5.4 Scaling Techniques 5.5 Questionnaire development and pretesting 5.6 Sampling 5.7 Fieldwork

6. PRIMARY DATA ANALYSIS & RESULTS 6.1 Washing Machines 32-43 6.1.1
Assessing the Current Market and Positioning of ONIDA WM in Pune Region

6.1.2 Identifying Factors Influencing the Sales of ONIDA Washing Machines 6.1.3 Categorizing Consumer Behavior (Identifying Factors affecting Consumer preferences towards choosing Washing Machines)

6.2 Microwave Ovens 44-54 6.2.1

Assessing the Current Market and Positioning of ONIDA MO in Pune Region

6.2.2 Identifying Factors Influencing the Sales of ONIDA Microwave Ovens

6.2.3

Categorizing Consumer Behavior

(Identifying Factors affecting Consumer preferences towards choosing Microwave Ovens)

6.3 After Sales Service ..55-58

6.3.1 Identifying Factors Influencing Customer Satisfaction in After Sales Service for ONIDA Washing Machines and Microwave Ovens

7. LIMITATIONS AND SCOPE OF PROJECT ..59

8. CONCLUSIONS & RECOMMENDATIONS 61-62

9.

APPENDIX

9.1 Questionnaires and Forms 64-82

9.1.1Questionnaire for ONIDIAN Dealers and Sub-dealers 9.1.2Questionnaire for Assessing Customer Satisfaction in ONIDAs After Sales Service 9.1.3Questionnaire for Non-Onidian Dealers 9.1.4Questionnaire for Consumer Behavior Study for Washing Machines 9.1.5Questionnaire for Consumer Behavior Study for Microwave Ovens 9.1.6Form for assessing the Sales and Distribution Network of ONIDA, Pune Branch 9.1.7Form for assessing the present After Sales Service system of ONIDA, Pune Branch

9.2 SPSS Output Files ..83-87 9.2.1 9.2.2

SPSS Output for Regression Analysis for Factors Affecting sales of ONIDA WM SPSS Output for Regression Analysis for Factors Affecting Sales of ONIDA MO

9.2.3SPSS Output for Regression Analysis for Factors Influencing Customer Satisfaction in After-Sales service of ONIDA

10. CD OF COMPILED DATA (Attached)

10.1 Dealer-wise & Area wise Market Research data for Pune region (2010) 10.2 Secondary Data analysis of 2009-2010 FY Sales data for WM and MO 10.3 Consumer behavior data Analysis WM and MO 10.4 SPSS OUTPUT FILES

CHAPTER 1

ABSTRACT
In light of the intense competition facing the consumer electronics industry, manufacturers are constantly engaged in the creation of new products and introducing new technologies that would hopefully win consumers' acceptance. However, against a backdrop of changing technology and sophisticated consumer wants, gaining customers acceptance and increasing market share for both existing and new products becomes an uphill task. MIRC Electronics offers a wide range of consumer durables, including C-TVs, LCD TVs, Air Conditioners, DVD Players, Microwave Ovens, Washing Machines, and Mobile Phones, under the brand name ONIDA. Although the brand has been performing extremely well in the TV, DVD, and AC categories, it is lagging behind LG, Samsung, Whirlpool, IFB, Kenstar, and other major players in the categories of washing machines and microwave ovens, with a market share of only 6% and 8% respectively. In Pune region, ONIDA washing machines and microwaves ovens share only 5% and 7% respectively. Moreover, in top-loading washing machines, which are now more in demand, the share by value and volume is just 3.3%. Besides, on analyzing the past 4 years sales data for different territories in the Pune region, it was analyzed that more than 40% of the dealers, especially in the Pune city, has stopped dealing with ONIDA washing machines and the sales of microwave ovens have also been declining at these counters. In FY 2009-2010, there has been an increase of only 0.9% in sale of washing machines over the past year, which is not a very encouraging figure. Therefore, the primary aim of this research is to study the current market for ONIDA Washing Machines & Microwave Ovens in the Pune Region, with emphasis on identifying factors affecting the sales of these two product categories. In order to improve the market share and increase the scope for repeated purchases and brand loyalty that eventually leads to optimum profitability, it is important for marketers to first understand the consumers buying behavior and his preferences and perceptions towards choosing the product. At the same time, after-sales service is equally important in satisfying consumer needs, an important factor in creating long term profitable relationship with the customer. According to Alexander et al, 2002, after-sales may generate more than three times the turnover of the original purchase during a given products life-cycle, and often provides profitability higher than product sales (Alexander et al., 2002). Therefore, as its secondary objectives, the research also aims at identifying the factors influencing customer satisfaction in after sales service of the company and validating all the key findings of the research with a consumer behavior study. The consumer behavior study conducted

as a part of the research not only helped in validating the research findings, but also helped in identifying factors influencing the consumer preferences towards choosing washing machines and microwave ovens. This research therefore uses mean and regression analysis (SPSS) to statistically prove the results.

Keeping the research objectives in mind, data was collected from 100 direct dealers/distributors, 8 sales executives, and 200 customers in the Pune Region, which comprises of the Pune City, PCMC (PIMPRI-CHINCHWAD MUNICIPAL CORPORATION), Ahmednagar, Sangli, Satara, Kolhapur, Ratnagiri, Sholapur, and Goa. The key findings of the research were that the sales of washing machines are being significantly affected by a poor promotion mix, low dealer margins, product attributes not in accordance with customer demands, poor display schemes, lack of in-shop demonstrators at the point of purchase, and an inefficient product placement. Lack of distributor for washing machines in the Pune city limited the reach of the company till their direct dealers only. A large number of sub-dealers were unaware of the product range due to lack of company visits. In case of microwave ovens, inefficient promotional activities at local level and fewer efforts to make customers aware and educated about the product led to decreased sales. The after sales service of the company is mainly affected due to lack of trained technicians, regular monitoring system, inefficient customer service call centers, and low motivation of the employees to follow up the dealers and customers with complaints. The issues, pertaining to the 4 elements of the marketing mix, leading to decreased sales were recorded in detail dealer-wise for both Onidian and non-Onidian dealers. If attention is paid to the above findings and each issue being faced by all dealers, sales can improve significantly in the coming years.

CHAPTER 2

LITERATURE REVIEW
2.1 CONSUMER DURABLES - An Introduction Consumer durables are the products whose life expectancy is at least 3 years. These products are hard goods that cannot be used up at once. The consumer durables sector can be segmented into two broad categories Electronics and Consumer Appliances, which is further segmented into Brown and White Goods. The product line included under each of these categories is as follows: Consumer Electronics: VCD/DVD, home theatre, music players, color televisions (CTVs), LCDs, Mobile Phones. White Goods: Air Conditioners, Washing Machines, Refrigerators, etc. Kitchen Appliances/Brown Goods: Mixers, Grinders, Microwave Ovens, Chimneys, Cooking Range, Irons, Electric Fans, etc. 2.2 INDUSTRY ANALYSIS An Overview of the Indian Consumer Durables Market

India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India. LG, SAMSUNG the two Korean companies have been maintaining the lead in the market with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth of the industry. The sector has been witnessing significant growth in recent years, helped by
several drivers such as the emerging retail boom, real estate and housing demand, greater disposable income and an overall increase in the level of affluence of a significant section of the population. The industry is represented by major international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc. 2.2.1 Industry Size, Growth, Trends The consumer durables market in India was estimated to be around US$ 5 billion in 2007-08. More than 7 million units of consumer durable appliances have been sold in the year 2006-07 with color televisions (CTV) forming the bulk of the sales with 30 per cent share of volumes. CTV, refrigerators and Air-

conditioners together constitute more than 60 per cent of the sales in terms of the number of units sold. In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have registered double-digit growth in the direct cool refrigerator market. In the case of washing machines, the semi-automatic category with a higher base and fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to 229,000 units, respectively. In the air-conditioners segment, the sales of window ACs have grown by 32 per cent and that of split ACs by 97 per cent. Since the penetration in the urban areas for these products is already quite high, the markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas.

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. Products like washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no longer considered luxury items. However, there were still very few players in categories like vacuum cleaners, and dishwashers.
The growth of various goods in this sector is tabulated as follows:
Table 1: Growth of Various Consumer Durables

Consumer Durables Air Conditioner Refrigerator Microwave Ovens Washing Machines Color Televisions (CTVs) / LCDs

Growth 25-35% 25-30% 40% 10-15% 25-40%

Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the

Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well acknowledged brands, and hold over wide distribution network. However, the penetration Level of the consumer durables is still low in India. An important factor behind low
penetration is poor government spending on infrastructure. For example, the government spending is very less on electrification programs in rural areas. This factor discourages the consumer durables companies to market their products in rural areas. 2.2.2 Competition Analysis

Bargaining power of suppliers in consumer durables sector is limited due to threat of imports and intense competition. Some of the entry barriers in consumer durables sector are distribution network, capital, and ability to hire purchases. Demand is seasonal and cyclical. Competition among players is on the basis of difference in prices and well-acknowledged brands.

2.3 Current and Future Scenario

In terms of Purchasing Power Parity (PPP), India is the 4th largest economy in the world and is expected to overtake Japan in the near future to become the 3rd largest. Indian consumer goods market is expected to reach $400 billion by 2010. India has the youngest population amongst the major countries. There are a lot of young people in India in different income categories. Nearly two- thirds of its population is below the age of 35, and nearly 50 % is below 25. There are 56 million people in middle class, who are earning US$ 4,400- US$ 21,800 a year. And there are 6 million rich households in India. The upper-middle and high-income households in urban areas are expected to grow to 38.2 million in 2007 as against 14.6 million in 2000. Rural sector offers huge scope for consumer durables industry, as it accounts for 70% of the Indian population. Rural areas have the penetration level of only 2% and 0.5% for refrigerators and washing machines respectively. The urban market and the rural market are growing at the annual rates of 7%10%and 25% respectively. The rural market is growing faster than the urban market. The urban market has now largely become a product replacement market. The bottom line is that Indian market is changing rapidly and is showing unprecedented business opportunity. In 2009, microwave ovens and air conditioners registered a growth of about 40%. Frost-free

refrigerators have registered significant growth as many urban families are replacing their old refrigerators. Washing machines, which have always seen poor growth, have seen reasonable growth in 2006. More and more Indians are now buying electrical appliances due to change in electricity scenario. With easy availability of finance, emergence of double-income families, fall in prices due to increased competition, government support, growth of media, availability of disposable incomes, improvements in technology, reduction in customs duty, rise in temperatures, growth in consumer base of rural sector, the consumer durables industry is growing at a fast pace. Given these factors, a good growth is projected in the future, too. The penetration level of consumer durables is very low in India, as compared with other countries. This translates into vast unrealized potential.

2.3 THE INDIAN CONSUMER APPLIANCES MARKET 2.3.1. An Overview The household appliances market reflects the sale of six product sectors: refrigeration appliances (including fridges, freezers and fridge freezers), cooking appliances (including cookers, microwaves ovens, cooker hoods, food processors and toasters), washing appliances (including washing machines, clothes dryers and washer-dryers), room comfort and water heater appliances (which include air conditioning, circulating and ventilation fans, space heaters and water heaters), vacuum cleaners, and dishwashers. The market value has been calculated using manufacturer selling prices. The performance of the market is forecast to decelerate, with an anticipated CAGR of 10% for the fiveyear period 2008-2013, which is expected to drive the market to a value of $7.7 billion by the end of 2013.The Indian household appliances market has grown at a strong rate in recent years. Further strong growth is expected for the forecast period. The Indian household appliances market generated total revenues of $4.8 billion in 2008, representing a compound annual growth rate (CAGR) of 12.5% for the period spanning 2004-2008. In comparison, the Japanese and Chinese markets grew with CAGRs of 1.1% and 7.5%, respectively, over the same period, to reach respective values of $18.6 billion and $24.4 billion in 2008.Market consumption volumes increased with a CAGR of 13.2% in 2004-2008 to reach a total of 34.7 million units in 2008. The market's volume is expected to rise to 52.2 million units by the end of 2013, representing a CAGR of 10% for the 2008-2013 periods. Refrigeration appliance sales proved the most lucrative for the Indian household appliances market in 2008, generating total revenues of $1,445.3 million, equivalent to 30% of

the market's overall value. In comparison, sales of cooking appliances generated revenues of $1,405 million in 2008, equating to 29.1% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 10% for the five-year period 2008-2013, which is expected to drive the market to a value of $7.7 billion by the end of 2013. Comparatively, the Japanese and Chinese markets will grow with CAGRs of 0.4% and 4.7%, respectively, over the same period, to reach respective values of $18.9 billion and $30.7 billion in 2013. Market Value The Indian household appliances market grew by 9.4% in 2008 to reach a value of $4.8 billion. The compound annual growth rate of the market in the period 2004-2008 was 12.5%. Market Volume The Indian household appliances market grew by 11.8% in 2008 to reach a volume of 34.7 million units. The compound annual growth rate of the market volume in the period 2004-2008 was 13.2%.Refrigeration appliance sales proved the most lucrative for the Indian household appliances market, generating 30% of the total revenues. In comparison, cooking appliance sales account for a further 29.1% of the market's revenue. Market Value Forecast In 2013, the Indian household appliances market is forecast to have a value of $7.7 billion, an increase of 60.7% since 2008. The compound annual growth rate of the market in the period 2008-2013 is predicted to be 10%. Market Volume Forecast In 2013, the Indian household appliances market is forecast to have a volume of 52.2 million units, an increase of 50.4% since 2008. The compound annual growth rate of the market volume in the period 2008-2013 is predicted to be 8.5%. 2.3.2. Demand and Penetration Level of White Goods in India In a study conducted by Frost & Sullivan and commissioned by India Semiconductor Association (ISA), the demand for Consumer Appliances is projected to grow exponentially at a compounded annual growth rate (CAGR) of 30%. The following graph illustrates the exponential growth and consumption pattern of consumer appliances in India for 10 years, from 2005 to 2015.

According to National Council for Applied Economic Research (NCAER), Indian consumer class is growing at a fast rate. This in turn is benefiting the consumer durables manufacturers. According to the NCAER report, following are the demand and penetration figures for white goods and appliances from 1995 to the present year (2010).
1995-1996 Demand Penetration level 3.43 million 149 per 1,000 households 2005-2006 8.72 million 319 per 1,000 households 2009-2010 13.14 million 451 per 1,000 households

Table 2: Demand & Penetration of White Goods and Appliances from 1995-2010 (Source: NCAER)

The appliance market in India is dominated by foreign brands. Korean brands, followed by American brands like Whirlpool, have replaced oncepopular Indian names Samsung, Onida, BPL, Voltas, Kelvinator, and Godrej as brand leaders. Only Indias Videocon is perceived to be competitive with foreign brands.
2.3.3 Problem of Indian Appliances Brands The problem with Indian appliances brands seems to be the perception that they have not delivered innovative products. Korean brands, in contrast, performed much better on this score while offering value-for-money products, and this has earned them the confidence of Indian consumers.

Further, Indian appliance producers have not focused on harnessing the power of their brands by targeting smaller town markets and lower price points. At one time Indian appliance makers like Sumeet and other local brands garnered sales volume through bargains, discounts and exchange offers. When Chinese players entered the market with competitively priced products, due to their extremely low production costs, the Indian players

lost ground here as well. The only appliance segment in which Indian brands continue to steadfastly rule the market is mixer-grinders/food processors, where Indian products are designed to meet unique Indian kitchen needs. Recognizing the fact that Indian brands need a wider product portfolio, Godrej - a traditional home appliance manufacturer - is making a foray into production of color TVs and DVD players. MIRC Electronics, a maker of Onida brand TVs, has moved into appliances with its washing machines and air-conditioners. Perhaps they are hoping to duplicate the success of Korean brands, which flooded the Indian market with a wide range of products, but it remains to be seen if Indian brands in the appliance segment will win back the confidence of Indian consumers.
2.3.4. New Launches and Innovation Fuel Growth

Detergent-free washing machines, freestanding cooker hoods and microwaves helped drive growth as manufacturers targeted the premium end of the industry. Up to eight microwaves were launched in 2005 with LG Electronics India Pvt. Ltd. taking the lead. As Indian consumers became more sophisticated in their buying habits, companies were forced to bring in the latest products, designs and innovations to meet demand. Also interesting were the LPG-based and halogen heaters within the heating appliances range as LPG- bases heaters helped marketers to further expand their market into villages and smaller towns as well where electricity is still not frequently available.
2.3.5 A SWOT Analysis of the Indian Market for Washing Machines & Microwave Ovens
STRENGTHS Presence of established distribution networks in both urban and rural areas. Presence of well-known brands WEAKNESSES Demand is seasonal and is high during festive season. Demand is dependent on good monsoons Poor government spending on infrastructure Low purchasing power of consumers THREATS Higher import duties on raw materials Cheap imports from Singapore, China and other Asian countries

In recent years, organized sector has increased its

share in the market Vis-a-Vis the unorganized sector OPPORTUNITIES In India, the penetration level of white goods is lower as compared to other developing countries. Unexploited rural market Rapid urbanization. Increase in income levels, i.e. increase in purchasing power of consumers Easy availability of finance

2.4 MARKET FOR WASHING MACHINES INDIA Vs MAHARASHTRA

The washing machine market is valued at Rs. 1500 crore and is growing at the rate of 15% this year (2009-10) compared to last year. The product line in this category is divided into 2 broad categories Semi-Automatic and Fully-Automatic. The fully automatic washing machine range is further divided into 2 categories- Top-Load and Front-Load. The fully automatic and semi-automatic sub category is growing at the rate of 40% and 15% respectively. Washing machine sales is cyclical in nature and its sales commences with the onset of monsoon. Some of the major players in the washing machine segment include LG, Samsung, Whirlpool, Videocon, ONIDA, Haier, and Godrej. According to the ORG report of 2008-2009, the market share figures in for major players in this product category are as follows:

Fig.2: Market Share (Volume) of Washing Machines in INDIA

The market share (volume) figures as illustrated in Fig.1 above clearly indicate that taking the overall washing machine sales into account, LG is the market leader in the Indian market with 23% share, followed by Samsung (17%), Whirlpool(15%), Videocon (13%), Godrej (6%), and ONIDA (6%), in that order. In the overall Indian market, ONIDA thus enjoys a 5th rank, which it shares with Godrej, in the washing machine category. Similarly, in the Maharashtra Market, as illustrated in Fig.3 below, LG takes the lead with 23%, followed by Samsung, Whirlpool, Videocon, Godrej, and ONIDA, in that order. In Maharashtra, however, ONIDA is positioned at 6th rank with 8% market share, below Godrej (9%).

Fig.3: Market Share of Washing Machines (Overall) in MAHARASHTRA

2.4.1 Semi-Automatic Washing Machines A Market Share Analysis Table.3 gives the market share figures (volume) for different brands in the semi-automatic washing machine category in Maharashtra, India, and Pune Region. The data, taken from the ORG Report (20082009) clearly shows that LG is the leader in this category and ONIDA shares a uniform 5 th rank with 7.4% share in India, 11% in Maharashtra, and only 5% in the Pune market.

SEMI-AUTOMATIC (2008-2009) BRAND LG Samsung Videocon Whirlpool Onida Godrej Electrolux Kenstar TCL Haier Kelvinator Sanyo Maharaja Panasonic Local BPL Others TOTAL % SHARE (VOL) MAHARASHTRA 25.8 12.8 19.7 13.5 11 8.7 2.1 1.4 1.7 1.8 0.3 0.5 0.2 0.2 0.2 0.1 0 100 INDIA 22.5 16.3 15.4 14.5 7.4 7.1 3.1 2.8 2.4 2.4 1.9 1.8 0.9 0.5 0.5 0.3 0.2 100 PUNE REGION 33 16 13 10 5 17 1.6 1 0.5 2 0.2 0.1 0 0.5 0.1 0 0 100

Table 3: Market Share Analysis for Semi-Automatic Machines (2008-2009): Source ORG Report (2009)

2.4.2 Fully-Automatic Washing Machines A Market Share Analysis Similarly, Table.4 gives the market share figures (volume) for different brands in the fully-automatic washing machine category in Maharashtra, India, and Pune Region. The data, taken from the ORG Report (2008-2009) clearly shows that LG is the leader in this category with 23.1 % share in the Indian market, but the Maharashtra market is dominated by SAMSUNG with 19.8% market share. ONIDA is positioned at a uniform 8th rank with just 3.3% share in India, 3.4% in Maharashtra, and only 2.8% in the Pune market. LG, Samsung, IFB, and Whirlpool are the major players in this category.

FULLY-AUTOMATIC (2008-2009) % SHARE (VOL) MAHARASHTRA 17.8 19.8 14.4 15.7 7.9 9.3 3.4 4 1.3 0.8 2.8 0.7 1.3 0.4 0.3 0.1 0 100 INDIA 23.1 18.9 16 15 8.1 4.9 3.3 3.3 2.3 1.5 1.4 0.9 0.8 0.2 0.2 0.1 0 100 PUNE REGION 19 18 8 25 9 7 2.8 3 2.4 0.4 1 0.5 3.2 0.2 0.2 0.1 0.2 100

BRAND LG SAMSUNG IFB WHIRLPOOL VIDEOCON GODREJ ONIDA ELECTROLUX HAIER SANYO KENSTAR SEIMENS PANASONIC TCL TOSHIBA HITACHI SHARP TOTAL

Table 4: Market Share (Vol) for Fully Automatic Machines (2008-2009); source: ORG Report (2009)

The ORG Report (2008-2009) also indicates that ONIDA shares a 4% market share in the Top-Load FA category in the Indian market and is positioned at 6th rank after SAMSUNG, LG, Videocon, Whirlpool, and Godrej, in that order. On the other hand, in the Front-Loading segment, ONIDA has a negligible

market share of just 0.9% in Indian market, in which this particular segment is mainly dominated by IFB (44.5% market share).
2.5 MARKET FOR MICROWAVE OVENS

Even as a host of electronic products made rapids inroads into Indian homes in the last decade, the microwave oven an essential item in every kitchen in developed countries-did not. Homemakers preferred to make do with their gas stoves, Tawas and pressure cookers. Last year was different though. The microwave oven market jumped as much as 25 percent to about 2.4 Lakh units. This is still a fraction of the color television market, which stands at over 6 million units, but going by the current level of activity, microwaves in India appear set to go the global way. A combination of factors has brought the market alive. Leading players like Samsung, LG, Whirlpool and Electrolux have introduced a range of models, with prices of entry level ones coming down to below Rs 6,000 last year. Many local players are sourcing products from China and selling it here at very attractive rates. LG, Samsung , Electrolux are also making determined efforts to get the homemaker to see the microwave as a cooking device, rather than as a mere reheating one, by holding country-wide cookery classes and home demonstrations. Some has also customized microwaves to Indian conditionsthere are, for instance, Whirlpool microwaves that seek to replicate the tawa effect to make Indian items like parathas and crisp dosas, and those which enable steam cooking for items like idlis and dhoklas. Innovations are also making the product look increasingly attractive. The longstanding concern that microwaves destroy a lot of valuable nutrients, far more than other forms of cooking, is being sought to be addressed technologically. Samsung claims its patented bio ceramic enamel coating helps retain essential vitamins while cooking. With the increased purchasing power of the younger generation and with more and more women balancing home and careers, any product that provide convenience and saves time will be well accepted in time to come. As for the companies, with competition heating up with increasing capacities and players, companies with the ability to cater the requirements of middle income households and with a certain level of indigenous know-how will emerge winners in this cluttered market. The product line in this product category is divided into 3 broad categories Solo, Convection, and Grill. According to the ORG Report (2008-2009), the market share analysis in this category is as follows: 2.5.1 Indian Market Share Analysis for Microwave Ovens

According to the ORG Report for Consumer Appliances (2008-2009), the Indian market for microwave ovens is dominated by LG and Samsung with 29% and 22% market share (Volume) respectively, followed by IFB (17%), Kenstar (12%), and ONIDA (7%). ONIDA thus enjoys an overall India rank of 5 th in this product category.

Fig.4: Market Share (Vol.) for Microwave Ovens _ India (2008-2009); Source: ORG Report (2008-2009) 2.5.2 Maharashtra Market Share Analysis for Microwave Ovens Similarly, in Maharashtra, the market for microwave ovens is dominated by LG and Samsung with 28% and 20% market share (Volume) respectively, followed by IFB (14%), Kenstar (11%), and ONIDA (9%). ONIDA thus enjoys a rank of 5 th in this product category in Maharashtra as well. Godrej is a very close competitor of ONIDA in the appliances segment.

Fig.5: Market Share (Vol.) for Microwave Ovens _ Maharashtra (2008-2009); Source: ORG Report (2008-2009)

2.6 COMPANY PROFILE MIRC ELECTRONICS LTD. (ONIDA) 2.6.1. An Introduction The History- Onida is one of India's leading electronics brands, established as "MIRC Electronics" in 1981. Onida was started by G.L. Mirchandani and Vijay Mansukhani in 1981 in Mumbai. In 1982, Onida started assembling television sets at their factory in Andheri, Mumbai. Since then, Onida has evolved into a multi-product company in the consumer durables and appliances sector. Onida achieved a 100% growth in ACs and microwave ovens and a 40% growth in washing machines last year. ONIDA came out with the famous caption "Neighbors envy, Owner's Pride", another popular theme of the ads was a devil complete with horns and tail. The devil has now been replaced by a married couple- Siddharth and Ritu. ONIDA Today- MIRC Electronics Ltd. is a leading Consumer Electronics Conglomerate of India with 2008-09 turn over of Rs.1800 Cr. It has the ownership of the Popular 'ONIDA Brand with 3200 Employees, 33 Branch Offices, 233 Service Centres, 1200 Trained Engineers, Network of 9000 Dealers & 180 Distributors and International Presence in CIS, UAE, Africa & China. MIRC Electronics won an Award for Excellence in Electronics in 1999, from the Ministry of Information Technology, Government of India. Onida with its Sales & Marketing office in Dubai

reported a 215 per cent export growth in two years, setting the base for an increased robust international presence. Onida products have been favored by hypermarkets like Lu Lu Centres, Carrefours, Geants and Dasmans in GCC countries. ONIDA Product Range - Today, in the Indian market ONIDA competes with all the local and international brands in the following product categories CTVs, LCDs, DVDs and Home Theater Systems, Washing Machines, Microwave Ovens, Air Conditioners, Presentation Products, and Mobile Phones. Refer to the ONIDA product line in the Washing Machine and Microwave Oven Category in Appendix 3. ONIDA Manufacturing Facilities: ONIDA has 3 Manufacturing Plants across the country - Wada, Mumbai (7sigma plant), Roorkee, and Noida. These Mfg Plants are ISO 9001 and ISO 14001 certified and having all world class facilities for Designing and Manufacturing of LCD TV, CRT TV, Projectors, Air Conditioner, Microwave, DVD Player, Washing Machine etc. 2.6.2 Sales and Distribution Network Pune Branch The Sales and Distribution Network of the company in the Pune Region was assessed through a general interview (Appendix 1.6) with the Business Manager, ONIDA, Pune Branch. Description of Channel Partners: The regions covered under the functioning of Pune Branch include the Pune City (PMC-Pune Municipal Corporation), PCMC (Pimpri-Chinchwad Municipal Corporation) area, Kolhapur, Ratnagiri, Sholapur, Osmanabad, Goa, Ahmednagar, Sangli, and Satara. There is 1 distributor each in Pune, PCMC, Goa, Ahmednagar, Sangli, Satara, Kolhapur, and Ratnagiri. Sholapur and Osmanabad, on the other hand, has several distributors in place. Each of these distributors handles distribution to several sub-dealers in their respective areas. Although these distributors handle the distribution of the entire product range, there is no distributor as such in the Pune City to look after the distribution of Washing Machines and Microwave Ovens. Besides, the major portion of the business comes from the direct dealers, with whom the company deals directly. The whole region has a total of 130 direct dealers. The Channel partners have been divided into 4 categories Class A+, Class A, Class B, and Class C, depending on the total annual revenue generated by them for the company. The dealers that achieve an annual sale of Rs. 3 crore and above for ONIDA are categorized as A+ dealers, while those with an annual sale of Rs. 1.5 crore to Rs. 3 crore are categorized as Class A dealers. The remaining is categorized under Class B and C. Criteria for Selection of Channel Partners: The distributors and direct dealers are selected based on their past and present performance in the market, capital investment, relevant experience in dealing with

consumer durables, and infrastructure available. However, there are no set guidelines for the above criteria with the same being variable with market condition and turnover expected of a dealer. Margins and Credit Policy: A 3% dealer margin is offered to the dealers on the products. Credit to the dealers is given for 28 days. A CD (Credit discount) of 2.5% is given if payment is made immediately; 1% if payment is made within 21 days, and a CD of 1.5% if it is made within 10 days. No discounts or other incentives are offered if payment is made beyond the 21st day. No billing is done if outstanding is beyond 28 days. All the dealer schemes are notified to the dealers on the 1st of every OM (Onida Month) or as and when they are changed. Target Setting, Training, & Evaluation of Channel Partners: Target setting is a result of negotiation between the distributor and the company. The targets for the direct dealers and distributors are set according to their past records and growth in the industry. The distributors also assess their own targets. Annual targets for the year are decided and the distributors can negotiate up to +/- 15% depending on the current growth scenario and the seasonal and cyclical variation in demand of the products. Information about the new products and company policies is given to distributors and direct dealers in the dealer meets. They are evaluated based on value and volume sales figures and are terminated in case of underperformance. Sales Structure of the Company: At present, there are a total of 8 sales executives taking care of sales and promotions in different areas under the branch. While Pune City has 2 sales executives, handling different territories, each other area has 1 sales executive/manager each. They report to the Branch Manager, who in turn has to report to the Regional Sales Head and the National Sales Head in hierarchy. Stock and Return Policy of the Company: The distributor is supposed to maintain a stock of 30 days, while the direct dealers are required to maintain a stock for 15 days (2 weeks). Replenishment of the stock is done every week. The company takes return of the damaged or the unsold stock, on a case-to-case basis. Channel Conflicts: Although the extent to which the problems of undercutting and stock inflow affect the channel cannot be ascertained, an approximately 1-2 % of the total market/sales is affected by such price variations. In Shop Demonstrators (ISD): The whole region under the Pune Branch has a total of 33 ISDs 5 in Pune, 3 in PCMC, 1 each in Ahmednagar, Kolhapur, Osmanabad, and Satara; 3 in Goa, and 2 each in Sangli and Sholapur. The ISDs are responsible to take care of in-shop promotion and sales (at the point of

purchase) and are selected based on basic qualifications, overall personality, communication efficiency, product experience, etc. Two-day training is provided to them after selection. The ISDs are placed at a dealer counter only if it achieves a total sale of Rs.6-7 Lakh/month for the company. The ISDs are monitored by the Activation Officer, who is also responsible for local and in-store promotional activities. 2.6.3. After Sales Service System Pune Branch The After Sales Service System of the company in the Pune Region was assessed through a general interview (Appendix 1.7) with the Service Manager, ONIDA, Pune Branch. The After Sales Service has been franchised to ADONIS, which operates 3 branches, 1 each in Pune, Kolhapur, and Goa. The Pune Branch operates 5 service centers 4 service centers (Sholapur, PCMC, Kotrud, and Swargate) run by individuals, and 1 service depot (Ahmednagar) run directly by ADONIS. The Kolhapur branch, on the other hand, has its service centers in Kolhapur, Sangli, and Ratnagiri. Goa Branch has 1 service center at Panjim and 1 CRC (Customer Relation Center) at Madgaon. 80% of the customers are recorded to launch their complaints directly at AEGIS, a centralized call center located at Yerwada, Pune. The number of technicians at each service center varies as per the demand of the product. These technicians are required to make 8 calls per day and are paid incentives on a per-call basis. They are required to report to their respective Group Leaders at their service center after the call is closed, after which the same is fed into a centralized CRM database. The spare part non-availability complaints are recorded in the PNA database and are monitored accordingly. Technicians are trained in office whenever a new product is launched. They are also responsible for installation and demos at time of installation. Regular visits are made by the service agents to the dealer counters to resolve any issues. A centralized call service center number is provided to all the dealers and on all the products and catalogues. Nearly 20% complaints that are launched at the dealer counters are reported to the main service center or the centralized call center by the dealers. A small customer call center is also operated in the office to follow up with the dealers and handle the day-to-day complaints launched at the counters.

CHAPTER 3

FORMULATING THE MARKET RESEARCH PROBLEM

3.1 BACKGROUND STUDY 3.1.1 Market Share Analysis in Pune Region According the ORG report of Consumer Electronics and Home Appliances (2008-2009), ONIDA enjoys a 7% market share in the Microwave Oven market (Fig.4) , while just a 6% market share by volume in the washing machine category (Fig.2) in the Indian market. Also, although it claims a 7.4% market share (vol.) in the semi-automatic WM segment (Table 3), it has merely 3.3 % market share in the Fullyautomatic WM segment. (Table 4) Washing Machines: The situation, however, is grim if the Pune region market is assessed separately. The following illustrations taken from the ORG Report (2009) clearly suggest that in Pune region of Maharashtra, ONIDA claims just 5% of the total market (volume) in the Washing Machine category (Fig 6), with 5% share in Semi-automatic segment (Table 3) and just 2.2% share in the fully-automatic segment (Table 4).

Fig.6: Market Share (Vol) data for Washing Machines_PUNE REGION; Source: ORG Report (2009)

Microwave Ovens: In case of Microwave Ovens, the ORG Report (2009) suggests that in Pune region of Maharashtra, ONIDA claims 8% of the total market (volume) in the Washing Machine category (Fig 7), and is ranked 5th after LG, Samsung, IFB, Kenstar, etc.

Fig.7: Market Share (Vol) Data for Microwave Ovens_Pune Region; Source: ORG Report (2008-2009)

3.1.2 ONIDA WASHING MACHINE SALES in PUNE REGION Annual Sales Data: Annual Sales data of last 4 years (2006-2010) for ONIDA Washing Machines in Pune Region was obtained from companys internal records to analyze the current sales situation and the percentage increase/decrease in sales over the last 4 years. On analyzing the annual sales figures for 4

years, it was clear that sales of WM increased significantly in the Pune region in 2007-2008, but thereafter decreased tremendously (Graph 1). The decrease in sales in 2008-2009 can be attributed to the global economic meltdown. However, there was only a 0.9 % growth in sales this FY (2009-2010) over the last year. The negligible increase is worth considering and the factors responsible should be assessed.

Graph.1: 4 years Annual Sales (Volume) of ONIDA Washing Machines in Pune Region (20062010)

Area-Wise Sales Data: On assessing the area-wise sales data for last four years (Table 5), it is clear that while there was a 52.4%, 40.3 %, 35.7% increase in annual sales of washing machines in Goa, Kolhapur, and Sholapur respectively, a sharp decline/decrease in sales was reported in other areas. In Pune and PCMC, areas with maximum demand and largest number of direct dealers, sales of ONIDA WM declined in FY 2009-2010 by almost 28% over the last year. This is a major point of concern, not worth ignoring.
PUNE/PC MC 2143 2781 1556 1120 -28.0 Ahmedna gar 247 487 590 574 -2.7 Sholap ur 119 94 311 422 35.7 Sangli/Sat ara 326 312 326 278 -14.7 Kolha pur 393 311 345 484 40.3 Pvt Party 51 76 243 152 -37.4 Tot al 410 9 495 8 409 3 413 0 0.9

FY 2006-2007 2007-2008 2008-2009 2009-2010 %CHANGE FROM PREVIOUS YEAR

Goa 830 897 722 1100 52.4

Table.5: AREA WISE SALES (2006-2010) OF ONIDA WASHING MACHINES in Pune Region

The results tabulated in Table 5, pertaining to the area-wise annual WM sales of ONIDA have been illustrated in Graph 2, where in it is clear that maximum sales every year are achieved from Pune, but the percentage of sales contributed from Pune region is decreasing every year since 2007. In simple words,

while ONIDA washing Machines are doing well in Goa, Kolhapur, and Sholapur over previous year, they are losing their market in Pune, Ahmednagar, Sangli and Satara.

Graph.2: AREA WISE SALES (2006-2010) OF ONIDA WASHING MACHINES in Pune Region

Dealer-Wise Sales Data: On assessing the area-wise and dealer-wise sales data for FY 2008-2009 and FY 2009-2010, another interesting point that was quite clear pertaining to the status of WM sales at each direct dealer counter has been tabulated below in Table.6. Nearly 41.1% of the direct dealers of ONIDA have stopped dealing in ONIDA WM this year and other 20% dealer counters showed a significant decline in sales of WM over previous year. In 1 year, 41.4%, 47.4%, and 45.7% direct dealers in Goa, Sholapur, and Pune/PCMC have stopped business in ONIDA Washing Machines.
Pune/PCM C N u m be r % 70 32 14 24 45.7 % 20.0 % 34.3 % Ahmedna gr N u m be r % 17 5 5 7 29.4 % 29.4 % 41.2 % Sangli/Sat ara N u m be r % 20 7 5 8 35.0 % 25.0 % 40.0 %

Sholapur Nu m be r 19 9 2 8 47.4 % 10.5 % 42.1 %

Category

Kolhapur N u m b er % 20 7 4 9 35.0 % 20.0 % 45.0 %

Goa N u m be r 29 12 5 12 41.4 % 17.2 % 41.4 %

Total N u m be r % 17 5 72 35 68 41. 1% 20. 0% 38. 9%

Total number of Direct Dealers in last 4 years Stopped WM Business with WM sale declining at WM Improved/Improving at

Table 6: Status of Washing Machine Sales at ONIDA's Direct Dealers_Pune Region (2010)

However, on the brighter side, WM sales have improved at a significant number of counters (39%) in all regions. Addition of newer and aggressive dealers can be a reason to this, but an equal number of dealers who stopped selling Washing Machines cannot be treated with indifference. (Fig 8)

Fig.8: Status of ONIDA Washing Machine Sales at Direct Dealers_Pune Region (2010)

3.1.2 ONIDA MICROWAVE OVEN SALES in PUNE REGION Annual Sales Data: Annual Sales data of last 4 years (2006-2010) for ONIDA Microwave Ovens in Pune Region was obtained from companys internal records to analyze the current sales situation and the percentage increase/decrease in sales over the last 4 years. On analyzing the annual sales figures for 4 years, it was clear that sales of MO increased significantly in the Pune region in 2007-2008, but thereafter decreased tremendously (Graph 3). The decrease in sales in 2008-2009 can be attributed to the global economic meltdown. There was a 7.9 % growth in sales of Microwave Ovens in this FY (2009-2010) over the last year. The percentage increase is good enough, keeping in mind that microwave oven is still a status symbol for a major portion of the Indian population and also that people are more cautious in saving money after global recession. However, identifying the factors that influence the sales and choice of microwave ovens can help boost sales and increase the market share.

Graph.3: 4 years Annual Sales (Vol) for ONIDA Microwave Ovens_Pune Region (2006-2010)

Area-Wise Sales Data: On assessing the area-wise sales data for last four years (Table 7), it is clear that while there was a significant increase of 111.9% in sales of microwave ovens in Goa this year (20092010) over the last year, the situation in Pune/PCMC was totally opposite. In the main city with maximum contribution to sales, there was seen a 12.9% decrease in sales of MO over the previous years. The reasons for the decline need to be assessed to improve the market share in the area like Pune/PCMC that has the maximum number of people with high disposable incomes and a large number of direct dealers. This is a major point of concern, not worth ignoring. There was a decent increase in sales in all other areas (Table 7)
PUNE/PC MC 1710 3838 2759 2402 -12.9 Ahmedna gar 117 169 201 242 20.4 Shola pur 129 197 192 291 51.6 Sangli/Sata ra 348 166 183 279 52.5 Kolha pur 671 411 242 433 78.9 Pvt Party 60 41 103 96 -6.8 Tot al 350 2 512 6 389 9 420 7 7.9

FY 2006-2007 2007-2008 2008-2009 2009-2010 %CHANGE FROM PREV YR

Goa 467 304 219 464 111. 9

Table 7: Area Wise Sales (Vol.) of Microwave Ovens_ (2006-2010)

The results tabulated in Table 7, pertaining to the area-wise annual MO sales of ONIDA have been illustrated in Graph 3, where in it is clear that maximum sales every year are achieved from Pune, but the percentage of sales contributed from Pune region is decreasing every year since 2007. In simple words, while ONIDA microwave ovens are doing well in Goa, Kolhapur, and Sholapur over previous year, they are losing their market in Pune/PCMC and the factors and reasons responsible should be found out.

Graph.3: Area Wise Sales (Vol.) of Microwave Ovens_ (2006-2010)

Dealer-Wise Sales Data: On assessing the area-wise and dealer-wise sales data for FY 2008-2009 and FY 2009-2010, another interesting point that was quite clear pertaining to the status of MO sales at each direct dealer counter has been tabulated below in Table.8. Nearly 42.4% of the direct dealers of ONIDA have stopped dealing in ONIDA MO this year and other 13.4 % dealer counters showed a significant decline in sales of WM over previous year. In one year, 58.8% and 40.3%, direct dealers in Sangli/Satara and Pune/PCMC respectively, have stopped business in ONIDA Microwave Ovens.

Category

Pune/PC MC N u m be r % 72 29 14 29 40.3 % 19.4 % 40.3 %

Ahmedna gar N u m be r % 16 5 3 8 31.3 % 18.8 % 50.0 %

Sangli/Sat ara N u m be r % 17 10 3 4 58.8 % 17.6 % 23.5 %

Sholapur N u m be r % 18 7 1 10 38.9 % 5.6% 55.6 %

Kolhapur N u m be r % 20 7 2 11 35.0 % 10.0 % 55.0 %

Goa N u m be r 29 15 0 14 51.7 % 0.0% 48.3 %

Total Nu mb er 172 73 23 76 42.4 % 13.4 % 44.2 %

Total number of Direct Dealers in last 4 years Stopped MO Business with MO sale declining at MO Improved/Improvin g at

Table 8: Analysis of Status of Microwave Oven Sales at ONIDA's Direct Dealers (2010)

However, on the brighter side, WM sales have improved at a significant number of counters (44.2%) in all regions, except Sangli/Satara (just 23.5%). Addition of newer and aggressive dealers can be a reason

to this, but an equal number of dealers who stopped selling Washing Machines cannot be treated with indifference. (Fig 8)

3.2 STATEMENT OF THE MARKETING RESEARCH PROBLEM On the basis of the above background study, based on the secondary market share and sales data, it is clear that the sales of Washing Machines and Microwave Ovens has declined significantly in the Pune Region, especially in Pune/PCMC territory, which has the largest market compared to other territories. Besides, a large number of direct dealers have stopped dealing in ONIDA WM and MO. Therefore, the reasons for declining sales need to be assessed so as to be able to identify possibilities of increasing the market share of ONIDA WM and MO in the Pune region. 3.3 THE RESEARCH APPROACH In light of the intense competition facing the consumer electronics industry, manufacturers are constantly engaged in the creation of new products and introducing new technologies that would hopefully win consumers' acceptance. However, against a backdrop of changing technology and sophisticated consumer wants, gaining customers acceptance and increasing market share for both existing and new products becomes an uphill task. MIRC Electronics offers a wide range of consumer durables, including C-TVs, LCD TVs, Air Conditioners, DVD Players, Microwave Ovens, Washing Machines, and Mobile Phones, under the brand name ONIDA. Although the brand has been performing extremely well in the TV, DVD, and AC categories, it is lagging behind LG, Samsung, Whirlpool, IFB, Kenstar, and other major players in the categories of washing machines and microwave ovens, with a market share of only 5% and 8% respectively. Therefore, the primary aim of this research is to study the Consumer Durables Market for ONIDA Washing Machines & Microwave Ovens in the Pune Region, identify factors affecting the sales, consumer buying behavior, and customer satisfaction in after sales service in the 2 product categories, and suggest ways of improving ONIDAs market share. In order to improve the market share and increase the scope for repeated purchases and brand loyalty that eventually leads to optimum profitability, it is important for marketers to first understand the consumers buying behavior and his preferences and perceptions towards choosing the product. At the same time, after-sales service is equally important in satisfying consumer needs, an important factor in creating long term profitable relationship with the customer. According to Alexander et al, 2002, after-sales may generate more than three times the turnover of the original purchase during a given products life-cycle, and often provides profitability higher than product sales (Alexander et al., 2002). It would also be

interesting to see the possible impact of all the 4 elements of the Marketing Mix Product attributes, Pricing, Display schemes, Product placement, dealer profitability, and the Promotion Mix on the sales of these products. The other factors that might influence sales include the performance of sales executives and the companys in-shop demonstrators. This research therefore uses regression analysis to identify (1) the relation between sales of ONIDA washing machines & microwave ovens and various predictor variables, such as customer satisfaction level in after sales service, dealer relationships, performance of the demonstrators, product attributes, effectiveness of promotion efforts, pricing, dealer profitability, placement of products, and display space for ONIDA products in the stores; (2) Factors affecting the customer satisfaction in after-sales service and assess the impact of customer perception towards various aspects of MIRCs after-sales services on customer satisfaction levels, and (3) Most important parameters for selection of a brand by the customers in the 2 product categories Washing Machines and Microwave Ovens As a background, it is extremely important to study the consumer durable market for washing machines and ovens in the Pune Region and the positioning of ONIDA vis--vis other brands in terms of market shares, product attributes, pricing, dealer margins, after sales service, and advertising. This would help to understand the key areas where ONIDA needs to improve to compete with the market leaders in the 2 product categories. This would also help to understand the factors that make different brands more saleable than others and the kind of models of washing machines and ovens the company should focus on. Lastly, the research attempts to extract dealer and distributors perception about the product and understand their Interface with the company to identify any other possible areas of improvement for improving regional sales and the overall market share of the brand.

CHAPTER 4

RESEARCH OBJECTIVES

MAIN RESEARCH OBJECTIVES:

To analyze the market for washing machines and microwave ovens in Pune Region, with special reference to ONIDA market share, and assess the marketing mix and positioning of ONIDA Vis--vis other major brands in the 2 product categories.

To identify the main factors influencing sales of ONIDA Washing Machines and Microwave Ovens in Pune Region.

To identify the main factors influencing the customer satisfaction in after-sales service of ONIDA.

To analyze the Consumer Buying Behavior, with emphasis on identifying consumer preferences towards choosing Washing Machine or a Microwave Oven.

To suggest corrective measures to improve the market share of ONIDA Washing Machines and Microwave Ovens.

SUB-OBJECTIVES:

Studying the Market for ONIDA Washing Machines (WM) & Microwave Ovens (MO) and assessing the marketing mix and positioning of ONIDA Vis--vis other brands in the two product categories:
To evaluate the market share of ONIDA Washing Machines & Microwave Ovens in the Pune Region To Compare the Product attributes, Price Mix, and Dealer Margins of ONIDA WM & MO with that of LG and Samsung To assess the dealer profiles, profitability, and effectiveness of product placement of ONIDA WM & MO in Pune Region To rank all the major players in the market on different elements of marketing mix and assess the positioning of ONIDA with help of Perception Mapping.

Identifying the main factors influencing sales of ONIDA Washing Machines and Microwave Ovens in Pune Region
To identify the reasons for the unwillingness of dealers to deal in ONIDA WM or MO. To identify the features that makes ONIDA WM & MO saleable or non-saleable. To use Regression Analysis to assess the correlation between annual sales and predictor variables, such as Product attributes, Pricing, Display Schemes, Promotion Mix, Customer product awareness, Profitability, product placement, dealer relations, performance of sales executives and in-shop demonstrators, and dealer satisfaction in after sales service.

To identify the main factors influencing the customer satisfaction in after-sales service of ONIDA
To use Factor Analysis to identify the main factors influencing customer satisfaction in after sales service. To use Regression Analysis to find the correlation between the overall satisfaction in after sales service of ONIDA and the effectiveness of various elements of delivery, installation, and warranty.

Analyzing the Consumer Buying Behavior

To understand the general consumer behavior for WM & MO To identify the consumer preferences towards choosing Washing Machine or a Microwave Oven To assess the extent of awareness for ONIDA Washing Machines and Microwave Ovens

CHAPTER 5

RESEARCH METHODOLOGY
5.1 TYPE OF RESEARCH DESIGN Both, an exploratory and a conclusive research, were carried out to collect and analyze data in accordance with the objectives. Exploratory research was carried out to study the sales and distribution network, after sales service system, and the perceptions of the sales executives and the dealers. This helped to identify the alternative courses of action, define the problem more precisely, isolate key variables and relationships, gain insight for developing an approach to the research problem, and to establish priorities for further research. Conclusive Research was then carried out to evaluate the present market share and to identify various factors affecting (i) Sales (ii) Satisfaction in after sales service, and (iii) Consumer preferences towards choosing a washing machine or a microwave oven. Both descriptive and causal data was collected and used for arriving at conclusion. 5.2 DATA COLLECTION FROM SECONDARY SOURCES Secondary data regarding the current scenario of the consumer durable market, national and regional market share of washing machines and microwave ovens of different brands, sales growth of ONIDA in the 2 product categories over the last 4 years, dealer-wise and product wise sales comparisons, competitive pricing, product brochures of different companies, dealer margins, and details of pricing and margins of various competitive brands were collected from the past research data, companys official records, internal sources, channel partners, and the internet journals. 5.3 DATA COLLECTION FROM PRIMARY SOURCES Dealer Survey: Keeping in mind the main objectives of analyzing the positioning of ONIDA Washing Machines and Microwave Ovens and identifying the main factors influencing the sales and after sales service in the 2 product categories, personal visits were made to 100 Onidian direct dealers and

distributors, sub-dealers, and non-Onidian dealers from Pune Region (Goa, Ratnagiri, Kolhapur, Sholapur, Osmanabad, PCMC, and Pune City) of Maharashtra. Data was collected by means of questionnaires. Consumer Survey: In order to measure the perception of the consumers about the criteria of choosing a washing machine and the underlying factors, data from 200 consumers of washing machine and microwave ovens, belonging to different segments, was collected through personal interviews, telephonic interviews, and e-mails. 5.4 QUESTIONNAIRE DEVELOPMENT & SCALING TECHNIQUES Dealer Survey: The questionnaires for dealer survey were constructed on a 5-point reverse Likert scale for all the possible factors influencing sales. (1=Excellent; 2=Good; 3=Neutral; 4=Poor; 5=Very Poor). The factors are the various elements of marketing mix that were found to be the probable reasons affecting sales, after a pilot study done to pre-test the questionnaires with 8 sales executives and 6 dealers in Goa. In the same questionnaire, dealers were also asked to rank the various brands from 1-8 (Ordinal scale) on a set of criteria to assess the positioning of ONIDA in the 2 product categories by means of perception mapping. Other dealer data, such as dealer profiles, annual sales, sales of ONIDA products, display space, and perception, complaints and issues was collected using open end questions. Consumer Survey: In order to measure the perception of the consumers about the criteria of choosing a washing machine and the underlying factors, a questionnaire on different items related to the attributes of preferring a washing machine was constructed on 5-point Likert scale for 25 attributes. Similarly, a questionnaire on different items related to the attributes of preferring a microwave oven was constructed on 5-point Likert scale for 26 attributes. The statements were measured on the reverse 5-point Likert scale where 5 indicate Least/Not preferred and 1 indicates, Strongly Preferred. The maximum focus was given on quality, durability, advertisement, product attributes, after sales service, and recommendations of friends and dealers. Response was collected from 200 consumers selected at random from the Pune City, Noida, Delhi, Bilaspur, and Gurgaon. As consumer behavior study is not restricted to a particular area, the sampling done at random from different regions is justified.

The questionnaires were pre-tested on 10 consumers to assess their validity and reliability.

Survey for After Sales Service: Keeping in mind the third objective of assessing the factors influencing the customer satisfaction in after sales service for ONIDA washing machines and microwave ovens, a questionnaire on 16 different aspects of after sales service was constructed on Reverse 5-point Likert scale, with 5 indicating Very Poor and 1 indicating Very Good. Response was collected from the 100 dealers that deal in ONIDA washing machines and microwave ovens. Their response was validated through customer complaints registered at their counter. (Refer to all the Questionnaires and forms used during the surveys in Appendix 1) 5.5 SAMPLING Dealer Survey: 100 dealers were interviewed from the major markets of Pune Region Pune, PCMC, Goa, Kolhapur, Sholapur, Ratnagiri, and Osmanabad. Out of these, sampling was done in a manner to collect data from a more or less equal number of Class A+, A, B, and C dealers (as per turnover done for ONIDA) to remove any bias. Similarly, out of the 100 dealers thus surveyed, 51 were Onidian direct dealers, 26 were Onidian sub-dealers, and 23 were Non-Onidian dealers. Consumer Survey: Response was collected from 200 consumers selected at random from the Pune City, Noida, Delhi, Bilaspur, and Gurgaon. As consumer behavior study is not restricted to a particular area, the sampling done at random from different regions is justified. Respondents were selected if and only if they used washing machine, while possession of a microwave oven wasnt a necessary criteria. 5.6 FIELDWORK
The data was collected in 2 months, w.e.f April 8, 2010 to June 7, 2010. Extensive field work was done while visiting markets in Pune, PCMC, Sholapur, Kolhapur, Ratnagiri, Goa, and Osmanabad. All the dealers counters were personally visited and assessed on terms of promotions, performance, performance of sales executives on the field, and dealer issues. Similarly, a door-to-door survey was done in case of consumers who were personally interviewed. During the fieldwork, the dealers and customers less aware of ONIDA product range were made aware through distribution of brochures, small promotional activities, etc. All the data thus collected was classified, tabulated and processed mainly to identify the group of determinants.

TOOLS AND TECHNIQUES USED:

Factor Analysis and Regression Analysis was used for data-reduction and summarizing. Factor analysis is a Multivariate technique and is employed in the study for the purpose of analyzing the data. The Principal Component Method is considered appropriate, as the primary purpose is to determine the minimum number of factors that would account for the maximum variance in the data collected. The data would be analyzed by using SPSS, version 17. Regression analysis would be used to see the correlation between the dependent and independent variables and assess the influence of the relevant factors on sales or customer satisfaction.

CHAPTER 6

PRIMARY DATA ANALYSIS

ONIDA WASHING MACHINES

6.1 Assessing the Current Market and Positioning of ONIDA Washing Machines 6.1.1 Evaluating the Present Market Share of ONIDA Washing Machines in Pune Region In order to evaluate the present market share of ONIDA Washing Machines, each of the 100 dealers were asked their annual WM sales and ONIDA sales in volume for FY 2009-2010 and the ONIDA market share was calculated area-wise and in total for Pune region as follows, as depicted in Table.9.

Table.9 : ANNUAL WM SALE (2009-2010) AREA Pune/PCMC Kolhapur Ratnagiri Sholapur Goa TOTAL TOTAL WM SALE 30487 2490 600 4040 3500 41117 TOTAL ONIDA SALE 950 282 45 406 433 2116 % ONIDA SHARE (VOL) 3.1% 11.3% 7.5% 10.0% 12.4% 5.1%

From the above table, it is clear that the ONIDA Washing Machines has an approximate share of 5.1% in the Pune Region for this year. It is the least (3.1%) in Pune/PCMC city and this is a grim situation that demands immediate consideration. 6.1.2 Assessing Dealer Profiles and Profitability of ONIDA Washing Machines
Table 10 ANALYSIS OF DEALER PROFILES Category Total Surveyed A* A B C

ONIDIAN DIRECT DEALERS ONIDIAN SUB DEALERS Total % NON-ONIDIAN DEALERS Total Surveyed

51 26 77

17 0 17 22.1%

11 4 15 19.5% 0 15

18 14 32 41.6 % 6 38

5 8 13 16.9 % 7 20

23 100

10 27

In the dealer survey conducted, dealers with a total turnover (for all brands and products)of less than 1.5 crore were categorized as C class, while those with a turn over between 1.5-3 crore were categorized as class B dealers. Dealers with turnover up to Rs. 5 crore were under Class A, while those with more than Rs. 5 crore were Class A+ dealers. According to the data tabulated in Table 10, only 22.1 % of the total dealers that deal in ONIDA WM belong to the A+ category and as many as 10 A+ counters have no placement of the product. Although, 41.6% of ONIDIA WM dealers belong to A/A+ category, and an equal percentage belongs to B category, it is good picture. But, as number of non-Onidian dealers surveyed is less than the Onidian dealers, the results can be biased. On further analyzing the profiles of the Dealers dealing in ONIDA washing Machines, it was found out that 53% of the dealers dont deal in Washing Machines. Although only 25.5% of the direct dealers dont sell WM, a significant number of sub-dealers (69.2%) do not sell ONIDA washing machine. As the sub dealers are large in number and occupy a huge market, it is important to pay equal attention to their issues as negative word of mouth spread from each of these counters culminate into a wide spread negative word-of-mouth in the market, which is affecting sales.

PROFILE OF DEALERS DEALING WITH ONIDA WM CATEGORY Total Dealers Surveyed DIRECT DEALERS A+ A B C SUBDEALERS A B C NON-ONIDIAN Total Number 100 51 17 11 18 5 26 4 14 8 23 Sell ONIDA WM 47 38 12 7 16 3 8 1 2 5 0 Don't Sell ONIDA WM Numbe r % 53 13 5 4 4 0 18 3 12 3 23 53.0% 25.5% 29.4% 36.4% 22.2% 0.0% 69.2% 75.0% 85.7% 37.5% 100.0%

Reasons of NOT Dealing in ONIDA WM (Total:53 dealers)

Table: 11: Analysis of ONIDA WM Dealer profiles

Table 12 depicts that semi-automatic washing machines of ONIDA are among the top-3 selling brands at 40.4% of the counters. However, the Top-Loading machines sell among the top 3 at only 8 counters out of 100 surveyed, which shows that significant amount of focus should be paid on the top-loading machines, which are much more in demand in areas like Pune/PCMC. The profitable counters, categorized as A+, A, B, and C, can be seen in Table 12.

PRESENCE/PROFITABLE COUNTERS

Number

Total Counters where ONIDA WM present Counters where ONIDA Semi-A is in Top 3 Selling Brands Counters where ONIDA FA WM in Top 3 selling Brands A+/A Counters where ONIDA WM IN Top 3 Selling Brands B Counters where ONIDA WM IN Top 3 Selling Brands C Counters where ONIDA WM IN Top 3 Selling Brands

47 19 8 9 7 3 40.4% 17.0% 19.1% 14.9% 6.4%

Table.12: Analysis of Presence of ONIDA WM at Profitable Counters

6.1.3 Assessing Effectiveness of Product Placement of ONIDA WM In the dealer survey, the dealers were required to rank the various types and segments of Washing machines according to their annual sales (all brands combined). (1= max. Sales; 5=Lowest sales). An average of these rankings, segment-wise and area-wise, was calculated as follows (Table 13).

MOST SELLING WASHING MACHINE CATEGORY IN DEMAND (Average Ranking) AREA Pune City/PCMC GOA Kolhapur Ratnagiri Sholapur Whole Region SA 2 2 2 1 1 2 TL 1 1 1 2 2 1 FL 3 3 3 3 3 3 5.5 5 5 5 4 5 5 6 1 4 3 3 1 2 6.2 3 2 1 2 1 3 6.5 1 1 2 1 1 1 6.8+ 4 3 4 5 4 4

Table 13: Dealer Survey - Most selling wm category in demand - Average Ranking

Graph 4 and 5 on the other hand depict the annual sales of ONIDA washing machines in different categories, area-wise and segment-wise. On comparing Table 13 with Graphs 4-5, it is clear that although the Top-Loading machines are more in demand in Pune/PCMC region, Goa, and Kolhapur, a significantly high number of semi-automatic machines have been sold here. This shows that semi-automatic machines of ONIDA are more in demand, but more focus on top-loading machines in these areas can tremendously increase sales.

Graph 4: Annual sales and fully automatic WM_areawise

Graph 5: Annual sales of ONIDA WM_Segment wise

Similarly, washing machines of 6, 6.5, and 6.2 kg are more in demand. Although, graph 5 shows that placement is good and in accordance with the overall demand, it is necessary to focus area wise demands to achieve more sales and market share. 6.1.4 Assessing the Positioning of ONIDA - Perception Mapping

In order to assess the positioning of ONIDA washing Machines, the dealers were asked to rank the major players in the washing machine segment on various attributes, such as Promotion mix, pricing, Product placement, after sales service, profitability, and annual sales. As is clear from the perception maps, according to the common dealer and customer perception and actual sales data, ONIDA is at rank 5th in

Ranking Based on Product Attributes and Price mix

semi-automatic range, while at 7th position in Fully Automatic range. According to these perception maps, ONIDA Washing Machine need to be improved on product attributes, product placement of top-loading machines, after sales service, and the promotion mix. This has to be, however, further verified by statistics.

Ranking Based on Annual Sales of SA and FA

6.1 Identifying the Factors Influencing Sales of ONIDA WM On calculating the mean (average rating) for all the factors that were rated by the dealers on a Reverse scale of 1-5 (1=Excellent; 2=Good; 3=Neutral, 4=Poor; 5=Very Poor), following results were obtained, clearly indicating several variables that needs to be improved and might be the major cause of declining sales. All the factors related to promotion, service, ISD performance, and display schemes are poor on average rating and must be improved to have better relations with the dealers.
ANALYSIS OF FACTORS AFFECTING SALES OF WM Mean Rating on scale of 1-5 3.4

COMPONENT C1 (Pdt Attributes)

FACTORS X1 Product Attributes

RATING Moderate/Neut ral Moderate/Neut ral Poor Moderate Moderate Moderate

C2 (PRICE MIX)

X2 X3

Pricing Display Schemes/Warranty Dealer Relation Profitability (DM +Vol) Product Placement Customer Product Awareness In store promotion

2.8 4.1 3.1 3.2 3.4

C3 (PLACE)

X4 X5 X6

C4 (PROMOTION)

X7 X8

4.8 4.0

V. Poor Poor

X9 X1 0 X1 1 X1 2 X1 3 X1 4 X1 5 X1 6

Display Space Live activities Local Ads After Sales Service Satisfaction Technicians Performance

4.1 4.6 4.1

Poor V. Poor Poor

C5 (SERVICE)

4.0 4.1

Poor Poor Moderate/Neut ral Poor Poor (<6% share)

C6 (PEOPLE)

Sales Exe Performance ISD Performance

2.9 4.0

DV

Annual Sales

4.4

Table 14: Analysis of Factors Affecting Sales of WM

6.1.1 Regression Analysis Regression Analysis was performed using SPSS 17.0 to assess the correlation between Annual sales as the Dependent Variable and all other factors from X1-X16 as the independent variables. The SPSS output for regression (Appendix 2) showed the following: There is a significant correlation (0.761) between annual sales of WM with the satisfaction in after sales service. There is partial correlation (0.5-0.6) between annual sales and factors such as ISD performance, customer product awareness, live activities, display schemes, and in store promotions The negative correlation is due to the use of reverse Likert scales. As the correlation is not more than 0.80 between any two or more predictor variables, there is no threat of multi-collinearity and no factor analysis needs to be done for reduction of data. This is corroborated by the Tolerance and VIF values in the collinearity diagnostics table in the output, as the tolerance for each variable is more than 0.20 and VIF is less than 5. Further, a strong R value of 0.844 shows a significantly high correlation between annual sales and all the above variables and they must be take care of to improve sales. Among the other reason found from the survey, it was analyzed that the absence of a distributor for Washing machines in the Pune region is the main cause why the sales at sub dealer end are declining.

6.2 CONSUMER BEHAVIOR STUDY OF WASHING MACHINES 6.2.1 Assessing the General Consumer Behavior

In the consumer surveys, as depicted in the above exhibits, it was found that most consumers for washing machines belong to the middle class families, with an annual income of Rs. 3.5 Lakh and above. Similarly, the joint families, Nuclear families with kids and double income couples made the majority of the washing machine consumer sample. On analyzing the type of washing machine in demand, the secondary data from the past sales data and the dealer survey was corroborated by the fact that most consumers preferred 6 kg-6.5 kg washing machine, with almost 33% consumers having possession of a 6 kg washing machine. Almost 52% consumers had top-load and negligible has a front-load machine. Thus, more focus should be on Top-Loading machines.

As illustrated in the following exhibit, the main reason for purchase of washing machine was rainy season (25%), to save time (23%), and to replace the old model or machine (20%).

When consumers were asked about the medium of awareness or the medium that inspired them the most for buying the brand of washing machine they chose, 60% consumers claimed to have decided their choice from the National TV ads for washing machines and 28% referred to the local ads. ONIDA should focus on TV ads, if wants to create awareness about its machines, as almost 85% customers claimed that they havent heard of ONIDA washing Machines!

6.2.2 Identifying Factors Influencing Consumer Preferences towards Choosing Washing Machines In order to identify the various factors influencing consumer preferences towards choosing washing machines, 200 consumers were asked to rate the various factors listed below on a reverse scale of 1-5 (1=Most preferred when Buying; 5=Least/Not preferred). On calculating the average ratings (Table 15), it was evident that most customers preferred the product attributes such as (i) Auto clean function/germ filters; (ii) Rust free body (iii) Capacity (iv)Steam wash (v) auto soak (vi) transparent lid (top cover) (vii) more dark colors. ONIDA washing should therefore focus more on these attributes while designing their products. In promotion and price mix, customers highly preferred low price, free ad-on products, display schemes, advertisements, and brand image. Therefore, it is important to lure customers with ads and free ad-on products/display schemes like a 1 year detergent subscription or washing tub and accessories, etc. along with the product. Another very important factor preferred by more than 90% customers was after sales service and its reputation in the market. Therefore, it is important for the company to remove the negative word of mouth regarding the services of the product, already prevailing in the market.

COMPONENT C1 (Pdt Attributes) X1 X2 X3

FACTOR wash technology germ filters/auto clean higher durability/rust free body

Average Rating 2.4 1.3 1.1

Comments Preferred Most Preferred Most

X4 X5 X6 X7 X8 X9 X1 0 X1 1 X1 2 X1 3 X1 4 X1 5 X1 6 X1 7 X1 8 X1 9 X2 0 X2 1 X2 2 X2 3 X2 4 x2 5

space occupied by machine motor speed capacity fully automatic features in built heater/steam wash auto soak user frndly panel aqua store aesthetic finish/transparent lid color wool wash brand image frnds recommendations advertisements self-explanatory brochures live demo before purchase free ad on products (detergent subscription, etc) price discount offer/financial schemes dealer recommendations after sales service proximity to dealers

3.7 2.3 1.4 2.4 1.4 2 2.4 2.1 1.4 1.2 2.3 1.3 3.2 1.3 2.3 4.2 1.3 1.4 3.5 2.2 1.4 2.4

Preferred Less preferred Preferred Most Preferred Preferred Most Preferred Preferred Preferred Preferred Most Preferred Most Preferred Preferred Most Preferred Neutral Most Preferred Preferred Less preferred Most Preferred Most Preferred Neutral Preferred Most Preferred Preferred

C2 (Promotions)

C3 (Pricing)

C4 (Place)/Others

Table 15: Consumer preferences for Buying Washing Machines

Conclusion: Thus, the dealer and the consumer survey of ONIDA washing machines clearly indicate beyond doubt that the sales of ONIDA washing machines are affected mainly due to (i) lack of product attributes that are in demand (ii) Lack or negligible promotional activities on national and local level to create a brand image or awareness (iii) Poor performance of ISDs and lack of display schemes like that of competitors (iv) poor service or the prevailing negative word of mouth about the service (v) uneven distribution to only a few major dealers; (vi) No focus on fully automatic and absence of an aggressive distributor for WM to take care of the unsatisfied and unattended sub-dealers.

ONIDA MICROWAVE OVENS

6.1 Assessing the Current Market and Positioning of ONIDA Microwave Ovens 6.1.1 Evaluating the Present Market Share of ONIDA Microwave Ovens in Pune Region In order to evaluate the present market share of ONIDA Microwave Ovens, each of the 100 dealers were asked their annual MO sales and ONIDA sales in volume for FY 2009-2010 and the ONIDA market share was calculated area-wise and in total for Pune region as follows, as depicted in following table.
ANNUAL MO SALE (2009-2010) AREA Pune/PCMC Kolhapur Ratnagiri Sholapur Goa TOTAL TOTAL MO SALE 20983 1312 300 2930 3400 TOTAL ONIDA SALE 1382 263 22 253 255 % ONIDA SHARE (VOL) 6.6% 20.0% 7.3% 8.6% 7.5% 7.5%

28925 2175 Table 16: Calculating the Market Share for MO (2010)

From the above table, it is clear that the ONIDA Microwave Ovens have an approximate share of 7.5 % in the Pune Region for this year. It is the least (6.6%) in Pune/PCMC city and this is a situation that demands immediate consideration. 6.1.2 Assessing Dealer Profiles and Profitability of ONIDA Microwaves
PROFILE OF DEALERS DEALING WITH ONIDA MO

CATEGORY

Total Number

Sell ONIDA MO

Don't Sell ONIDA MO Number % 43.0% 17.6% 29.4% 27.3% 5.6% 0.0% 42.3% 75.0% 14.3% 75.0% 100.0%

Total Dealers Surveyed DIRECT DEALERS A+ A B C SUBDEALERS A B C

100 51 17 11 18 5 26 4 14 8

57 42 12 8 17 5 15 1 12 2

43 9 5 3 1 0 11 3 2 6

NON-ONIDIAN 23 0 23 Table 17: PROFILE OF DEALERS DEALING WITH ONIDA MO

In the dealer survey conducted, dealers with a total turnover (for all brands and products)of less than 1.5 crore were categorized as C class, while those with a turn over between 1.5-3 crore were categorized as class B dealers. Dealers with turnover up to Rs. 5 crore were under Class A, while those with more than Rs. 5 crore were Class A+ dealers. According to the data tabulated in above table , only 29.4 % of the total dealers that deal in ONIDA MO belong to the A+ category and as many as 10 A+ counters have no placement of the product. Almost 56.7% of ONIDIA MO dealers belong to A/A+ category, but 75% of the sub dealers belong to the A category and do not sell MO. But, as number of non-Onidian dealers surveyed is less than the Onidian dealers, the results can be biased. On further analyzing the profiles of the Dealers dealing in ONIDA Microwave ovens, it was found out that 43% of the dealers dont deal in MO. Although only 17.6 % of the direct dealers dont sell MO, a significant number of sub-dealers (42.3%) do not sell ONIDA microwave ovens. As the sub dealers are large in number and occupy a huge market, it is important to pay equal attention to their issues as negative word of mouth spread from each of these counters culminate into a wide spread negative wordof-mouth in the market, which is affecting sales.
Table 18: Reasons of NOT Dealing in ONIDA MO (Total: 43 dealers) Reason Negative word of mouth about after sales service Bad experience with service in the past Product features not in demand/not competitive looks Highly priced High dealer Margins or no dealer schemes No proper Distributor for WM/No proper product placement No interaction/No visits from company for MO No Brand pull or Awareness for ONIDA MO No local area or in-store promotional activities/cooking classes done in the area No awareness about MO in the area; No demand for the product itself Responses Number 14 35 2 5 7 13 19 12 40 3 % 32.6% 81.4% 4.7% 11.6% 16.3% 30.2% 44.2% 27.9% 93.0% 7.0%

The survey suggested (refer table above) that almost 93% of the dealers refused to deal in washing machines and microwave ovens because of no local area or in-store promotional activities or absence of cooking classes in that area. 81.4 % stopped business because of a bad experience of service in the past while almost 44.2% claimed that they dont deal in MO as they have no visits/interactions from the company. The following table depicts that ONIDA MO are among the top-3 selling brands at 71.9 % of the counters, out of which 34.1 % are a+/A class counters. PRESENCE/PROFITABLE COUNTERS Total Counters where ONIDA MO present Counters where ONIDA MO is in Top 3 Selling Brands A+/A Counters where ONIDA MO in Top 3 Selling Brands B Counters where ONIDA MO in Top 3 Selling Brands C Counters where ONIDA MO in Top 3 Selling Brands Number 57 41 14 20 7 % 71.9% 34.1% 48.8% 17.1%

Table 19: Calculating the Presence of ONIDA MO at Profitable Counters

6.1.3 Assessing Effectiveness of Product Placement of ONIDA MO In the dealer survey, the dealers were required to rank the various types and segments of Microwave Ovens according to their annual sales (all brands combined). (1= max. Sales; 5=Lowest sales). An average of these rankings, segment-wise and area-wise, was calculated as follows.
Table 20: MOST SELLING WASHING MACHINE CATEGORY IN DEMAND (Average Ranking) Number of Counters where preferred are indicated Average Rank AREA Pune City/PCMC GOA Kolhapur Ratnagiri Sholapur Whole Region RANK 1 7 8 0 0 0 0 8 8 1 9 4 0 1 0 0 5 9 2 0 42 0 4 0 2 48 4 2 1 39 6 6 1 2 53 2 2 3 19 2 6 1 0 27 6 2 5 49 7 7 1 3 66 1 2 6 38 7 5 1 2 52 3 2 8 29 4 1 0 2 36 5 30+ 9 0 0 0 2 11 7 Convection 1 1 1 1 1 1 Grill 2 2 2 2 2 2 Solo 3 3 3 3 3 3

The following Graphs on the other hand depict the annual sales of ONIDA microwave ovens in different categories, area-wise and segment-wise. On comparing Table with Graphs, it is clear that the product placement of more convection models in almost all cities is in accordance to the demand. MO of capacity 21, 25 and 26 L are more in demand and the focus is currently appropriate. However, the company should now not focus on 20 L or Solo models as the demand is almost negligible. Convection range of 123 auto cook menu is demanded in a smaller size than 28L, which is not much in demand.

Graph.5: Segment wise sales data_ONIDA MO

Graph.6: Area-wise sales of ONIDA MO in different segments

6.1.4 Assessing the Positioning of ONIDA MO In order to assess the positioning of ONIDA Microwave Ovens, the dealers were asked to rank the major players in the washing machine segment on various attributes, such as Promotion mix, pricing, Product placement, after sales service, profitability, and annual sales. As is clear from the perception maps, according to the common dealer and customer perception and actual sales data, ONIDA is at rank 3rd in annual sales, looks, profitability, and at 2nd rank in the price mix. However, it lags behind in after sales service and promotional activities. The Competitive brands are illustrated clearly in the graph below, where the highest number 8 on Y-axis refers to highest share or rank.

6.2 Identifying the Factors Influencing Sales of ONIDA WM According to the dealer survey, 60% of the customers purchase ONIDA microwave because of its aesthetic looks and reasonable pricing. On the other hand, 65-70% customers choose other brand over ONIDA because of negative word of mouth among customers regarding service, ineffective demos and promotional activities, and no awareness about the cooking classes.
What MAKES ONIDA MICROWAVE OVENS SALEABLE? (Total: 57 ) Reason/FACTOR Dealer Recommendations (Dealer has to push the stock) Aesthetic Look Auto Cook Menu Reasonable pricing Old reputation of ONIDA Service Reason/FACTOR Negative word of mouth about service among customers Less Variety/Product Range in demanded size Ineffective Demos/promotional activities Ineffective cooking classes/no awareness about them Bad experience with other product of ONIDA High Pricing Number of Responses Number 25 34 23 34 19 1 WhAT MAKES ONIDA MICROWAVE OVENS NON-SALEABLE? (Total: 57 ) Number of Responses Number 37 10 40 37 30 % 65% 18% 70% 65% 53% 9% % 44% 60% 40% 60% 33% 2%

5 Table 21: Features that make ONIDA MO saleable or non-saleable

As cooking classes was one of the main reasons pointed out by the dealers, further enquiry about the cooking classes suggested that 49% dealers felt that customers dont prefer the ONIDA cooking classes because of its far venue (in office, Pune, Dhole Patil Rd.), while 39% werent aware about the cooking classes at all. A total of 80% customers and dealers believed that the ONIDA cooking classes are not very effective in luring the customers. These dealers are mainly from far-away places like PCMC, etc where people find it difficult to come to the cooking classes in Pune city. LG and Samsung on the other hand conduct such classes not only in store but also at a central location in different territories.

On calculating the mean (average rating) for all the factors that were rated by the dealers on a Reverse scale of 1-5 (1=Excellent; 2=Good; 3=Neutral, 4=Poor; 5=Very Poor), following results were obtained, clearly indicating several variables that needs to be improved and might be the major cause of declining sales. All the factors related to promotion, service, ISD performance, and display schemes are poor on average rating and must be improved to have better relations with the dealers.
Table 22: ANALYSIS OF FACTORS AFFECTING SALES OF MO Mean Rating on scale of 1-5 2.8 2.8 4.0 3.0 2.9 3.2

COMPONENT C1 (Pdt Attributes) C2 (PRICE MIX)

FACTORS X1 X2 X3 Product Attributes Pricing Display Schemes/Warranty Dealer Relation Profitability (DM +Vol) Pdt Placement

RATING Moderate/Neutral Neutral Poor Moderate Moderate/Neutral Moderate/Neutral

C3 (PLACE)

X4 X5 X6

C4 (PROMOTION)

X7 X8 X9 X1 0 X1 1 X1 2 X1 2 X1 3 X1 4

Customer Pdt Awareness In store promotion Display Space Live activities Local Ads Cooking Classes After Sales Service Satisfaction Technicians Performance

4.2 4.0 2.7 4.6 4.1 4.3

Poor Poor Good-Moderate V. Poor poor Poor

C5 (SERVICE)

3.8 4.0

Almost Poor Poor

C6 (PEOPLE)

Sales Exe Perf

2.9

Moderate/Neutral

X1 5 X1 6

ISD Performance

3.8

Poor Poor ; Between 510%

DV

Annual Sales

4.1

6.1.1 Regression Analysis Regression Analysis was performed using SPSS 17.0 to assess the correlation between Annual sales as the Dependent Variable and all other factors from X1-X16 as the independent variables. The SPSS output for regression (Appendix 2) showed the following: There is a significant correlation (0.761) between annual sales of MO with the satisfaction in after sales service. There is partial correlation (0.5-0.6) between annual sales and factors such as ISD performance, customer product awareness, cooking classes, live activities, display schemes, and in store promotions The negative correlation is due to the use of reverse Likert scales. As the correlation is not more than 0.80 between any two or more predictor variables, there is no threat of multi-collinearity and no factor analysis needs to be done for reduction of data. This is corroborated by the Tolerance and VIF values in the collinearity diagnostics table in the output, as the tolerance for each variable is more than 0.20 and VIF is less than 5. Further, a strong R value of 0.844 shows a significantly high correlation between annual sales and all the above variables and they must be take care of to improve sales. Among the other reason found from the survey, it was analyzed that the absence of a distributor for Microwave Ovens in the Pune region is the main cause why the sales at sub dealer end are declining.

6.2 CONSUMER BEHAVIOR STUDY OF MICROWAVE OVENS 6.2.1 Assessing the General Consumer Behavior The consumer behavior study suggested that 40% of the MO consumers buy it based on references from friends and neighbors. Therefore, negative word of mouth for service in such a product category can be harmful for the sales. The remaining 18% and 15% go for dealer recommendations and national/local TV/newspaper ads.

Out of 200 consumers surveyed, 35 were found to not have a MO. Almost 43% of them said they dont buy it as they are not aware of the use of the product. Therefore, customer education and promotional activities like cooking classes, live demos, etc, are a must to boost sales. Almost 67% customers of this category said they would be interested in cooking classes if conducted for free at a convenient location.

According to the segmentation studies, Microwave Ovens are usually purchased by middle class, with an annual turnover of 3.5 Lakh and above. It is also more preferred in Nuclear families with teenager kids (24%) and so the promotional activities can be targeted at teenagers. 72% customers said that they are not aware of ONIDA microwave oven. This is probably due to lack of promotional activities in the society, area, dealer counters, and television.

The most common reason for purchase of Microwave Oven was found to be either to save time (33%) or received as a gift (27%).This is illustrated as follows:

6.2.2 Identifying Factors Influencing Consumer Preferences towards Choosing Microwave Ovens In order to identify the various factors influencing consumer preferences towards choosing microwave ovens, 165 consumers were asked to rate the various factors listed below on a reverse scale of 1-5 (1=Most preferred when Buying; 5=Least/Not preferred). On calculating the average ratings (Table 15), it was evident that most customers preferred the factors such as (i) Number of recipes, (ii) Overall look (iii) Anti bacterial filters (iv) Steam clean (v) free ad on products (vi) advertisements (vii) live activities ONIDA washing should therefore focus more on these attributes while designing their products.

COMPONENT C1 (Pdt Attributes) X1 X2 X3 X4 X5 X6 X7 X8 X9 X1 0 X1 1 X1 2 X1

FACTOR Multi-Ethnic Menus/Recipes Number of Recipes provided Child Recipes Overall Look Color Choice Space Occupied by Oven Calorimeter/Health Features Capacity Display Size and Type Auto Defrost Anti-Bacteria Filters Steam Clean Brand Image

Average Rating 2.1 1.3 4.1 1.3 4.5 4.8 4.1 2,.3 3.2 4.1 1.5 1.2 2.4

Comments Preferred Most preferred Less preferred Most Preferred Less preferred Not preferred Less Preferred Preferred Neutral Less preferred Most Preferred Most Preferred Preferred

3 X1 4 Cooking Classes 1.2 X1 C2 (Promotions) 5 Detailed self-explanatory brochures 3.4 X1 Free ad-on products (books, bowls, 6 recipes, etc) 1.3 X1 7 Friend recommendations 2.3 X1 8 Advertisements 1.2 X1 9 Live activities in Society 1.4 X2 C3 (Pricing) 0 Live activities at Dealer counters 2.1 X2 1 Low Price 1.9 X2 2 Discount offers/Financial schemes 1.4 X2 C4 (Place)/Others 3 Dealer recommendations 2.3 X2 4 Proximity to dealers 2.1 x2 5 After sales service e 1 X2 6 Cooking detail demos at installation 1 Table 23: Identifying Consumer Preferences towards Choosing Microwave Oven

Most Preferred Neutral Most Preferred Preferred Most Preferred Most Preferred Preferred Preferred Most Preferred Preferred Preferred Most Preferred Most preferred

In promotion and price mix, customers highly preferred low price, free ad-on products, display schemes, advertisements, and brand image. Therefore, it is important to lure customers with ads and free ad-on products/display schemes like a recipe magazine subscription, bowls, gloves, cooking accessories, etc.. Another very important factor preferred by more than 90% customers was after sales service and its reputation in the market. Therefore, it is important for the company to remove the negative word of mouth regarding the services of the product, already prevailing in the market.
Conclusion: Thus, the dealer and the consumer survey of ONIDA microwave ovens clearly indicate beyond doubt that although the sales of ONIDA microwave ovens is good, but are affected mainly due to (i) Lack or negligible promotional activities on national and local level to create a brand image or awareness (iii) Poor performance of ISDs and lack of display schemes like that of competitors (iv) poor service or the prevailing negative word of mouth about the service (v) uneven distribution to only a few major dealers; (vi) Ineffective cooking classes on demos by technicians who do not have any cooking training.

ONIDA AFTER SALES SERVICE

6.3 Identifying Factors Affecting the Customer Satisfaction in After Sales Service of ONIDA In the dealer survey, the Onidian dealers were asked to rate the various elements of after sales service, categorized under the three broad components delivery, installation, and warranty on a reverse scale of 1-5. On calculating the mean rating, following results were obtained.
Table 24: ANALYSIS OF FACTORS AFFECTING SALES OF WM Mean Rating on scale of 1-5 1.8 1.9 2.0 2.3 2.4 2.8 3.6 3.4 3.9 3.8 3.9 3.7 3.8 4.3 4.0 2.3 3.8

COMPONENT C1 (Delivery)

FACTORS X1 X2 X3 X4 X5 Reception of Invoice/Delivery Papers Transfer of Product to your Place Reliability in delivery times Quality of product when delivered at home Quality of product packaging when delivered Accurate info about installation time elapsed btwn delivery and installation Attentiveness of technicians to avoid damage Advice and demo/instructions given by technicians ONIDA's quality of response to complaints Time taken to respond to complaints Repeat complaints; Satisfaction after 1st resolution Time taken to rectify failed item Availability of spare parts Replacement of defective product, after 2-3 repairs Dealer repair quality outside warranty claim Customer Satisfaction in AFS

RATING Good Good Good Good Good Satisfactory SatisfactoryPoor Satisfactory Poor Nearly Poor Poor Nearly Poor Nearly Poor Poor Poor Good Nearly Poor

C2 (INSTALLATIO N)

X6 X7 X8 X9

C3 (WARRANTY)

X10 X11 X12 X13 X14 X15 X16

DV

X17

A close observation of the average ratings suggest that while the overall satisfaction in after sales service is nearly poor, the elements of warranty (response to complaints) and the technicians performance during installations need to be improved considerably. Following observations were made during the dealer survey: 1) Although the company claims to have a policy of replacing the product if it doesnt work properly even after 3 repairs/repeat complaints, the data shows that at most counters, more than a month is

taken for replacement of defective/damaged products. At times, dealers replace the product for the customers (people prefer to take a different brand on replacement) themselves and get no replacement in turn from the company. This has led to the situation that almost 60% dealers claim to have lost confidence in services of the company and have stopped dealing in less moving products like WM and MO.

2) Spare part availability for both new and old models is a major issue and neither company nor dealers seem to have any suggestion it. LG, Samsung and other take no more than 15 days for spare part availability.

3) Time taken to respond to complaints and repair is more than 1 week. No follow up is done with customers after complaint launch.

4) Almost every dealer out of 100 claimed that the technicians are not trained properly to handle electronics as well as appliances. Most technicians are not aware of product details like warranty period, functioning, etc. They are less motivated (very less salaries) and do not pay regular visits at counters to make calls registered at the dealers point. After demo call is launched, installation is late and demos given during installation are poor.

5) Authorized service centers and technicians not available in far away areas on outskirts of Pune like uruli kanchan, shirwal, chakan, pcmc, baramati. 1-2 technicians have to handle all these areas and as they are very far, they dont pay any visit for service issues.

6) Complaints over phone are not responded effectively over the phone. No call monitoring system in place at call center.

7) Sub-dealers are not followed up for service issues and being large in number, they are the ones that spread the negative word-of-mouth in the market. No distributor for Washing Machines and Microwaves and the situation gets worse as no one to take care of sub-dealer needs. No company visits are made to the sub-dealers.

8) Complaint registering system at the dealer counters and the service center system is not integrated well. Dealers are not informed about the follow up done or about complaint resolution.

6.3.1 Regression Analysis Regression Analysis was performed using SPSS 17.0 to assess the correlation between Overall customer satisfaction in after sales service as the Dependent Variable and all other factors from X1-X16 as the independent variables. The SPSS output for regression (Appendix 2.3) showed the following: There is a significant correlation (0.80 and above) between overall satisfaction and the efficiency of the spare part availability, response to complaints, time taken to respond and rectify the failed items and all the elements of under Component 3 (warranty). As the correlation is more than 0.80 between two or more predictor variables, there is a significant threat of collinearity factor analysis needs to be done for reduction of data. Further, a strong R value of 0.968 shows a significantly high correlation between the listed factors and the overall satisfaction in after sales service of the company.

CHAPTER 7

LIMITATIONS & SCOPE

Limitations:
All the regions under Pune Branch, such as Ahmednagar, Sangli, and Satara could not be covered due to lack of time. Survey from an equal number of Onidian non-dealer and sub-dealers could have possibly removed any bias in the results. However, maximum attempt was made to avoid any such biased sample while regression analysis. The service centers of ADONIS and the service network could not be studied for further recommendation on after sales service due to cost and time constraints.

Scope of the Project: A detailed factor analysis can be done on consumer behavior data to find out all the possible details, which are presently beyond the scope of the project. If cost and time permits, a detailed survey of the service system, inventory planning, etc. can be of great help in making meaningful recommendations.

 Similar analysis of the major factors influencing sales of electronics can be done using regression and the results can be further compared to see of there are common things that the company can improve.

CHAPTER 8

CONCLUSION & RECOMMENDATIONS

AFTER SALES SERVICE SYSTEM The comments and complaints of the dealers regarding service issues have been recorded in the CD. If each of the complaint issue is accepted as genuine, then the solution is obviously to make sure that they are taken care of. What is required is giving top priority to After Sales Service, with the company taking the initiative on warranty complaints ensuring prompt and effective attention to complaints including handling the logistics and then training, motivating and incentivizing dealers who do good after sales service Firstly the company must give top priority to the function of after sales service. The Marketing including Sales and after sales service functions should establish the need for drastic improvement in the delivery as measured by promptness and effectiveness to each and every complaint. Adequate infrastructure in terms of place, people and materials especially critical spares must be set up and kept in place. The company must set targets for time duration and quality of service including repairs for all service centers and for operatives. The service technicians should be trained and motivated before being assigned to their respective jobs. Parts availability has to be accorded top priority. Here for critical parts even if excessive inventory levels are maintained it should be considered as acceptable. Unfortunately most companies fail here because these parts are also needed for production and if there is a lack of full availability the spares function always suffers. Therefore instructions have to come from the highest level and compliance monitored also at the highest level. It is a serious mistake to outsource after sales service. No company that calls itself a good company can afford to outsource this absolutely super critical function. The head of service must be a very senior person and he should have and equally importantly be seen to have the confidence and support of the top management. The service people also must be superior if not

excellent performers because it is here that customer loyalty is built and repurchase decisions can take place when customers are satisfied. Regular visit to the existing service centers and a study is required to make as well as implement detailed suggestions on inventory planning, scheduling of repairs, tracking service performance including quality and many more.

WASHING MACHINES Product attributes must be improved in accordance with features in demand, as analyzed in the consumer behavior studies. Although pricing is appropriate, more focus should be on display schemes and free ad on products to create visibility in stores. Whirlpool has recently started with 1 year free detergent subscription. Similar schemes on a local level, like free ad on accessories (tubs, towels, cleaner, or vouchers) can be used to lure the customers and create a little awareness. Although dealer margins offered are much less than competitive brands, focus can be placed on proper product placement. Although semi-automatic washing machines sell more, they become slow-moving if placed in areas where top-loading is in demand. Presence of a distributor for Washing Machines is a must in the Pune City Market. Others areas with distributors like Sholapur and PCMC are doing much better than Pune city. Distributor chosen must be aggressive. Alternatively, sales executives can be hired to pay regular visits to the sub dealers. Most of the sales are unevenly distributed among dealers. Only 1-2 major dealers are being focused to achieve targets. A uniform approach and distribution is needed to prevent dependency on a few dealers. Live demos, in-store promotions, dummy models before the launch of new product, local ads, etc. can help in creating awareness More product range is advisable in the Top-Loading category After sales service, especially, spare part availability should be improved.

 Technicians should be properly trained in both electronics and appliances.

MICROWAVE OVENS Display schemes, like ad-on (cooking accessories, bowls, gloves, etc), or subscriptions to recipe magazines, and even free solo models on washing machines can help in creating visibility Individual dealer issues, as recorded in CD, should be taken care of Promotional activities and live activities such as society demos, cooking classes in the stores, cooking competitions etc. can be helpful Cooking classes should also be conducted at centralized locations so as to make them more accessible to people. Technicians should be trained to give proper demos for 10-15 minutes and cook a dish of customers choice at time of installation. Promotional activities should increase in areas like Goa during the coming Christmas.

Please Note: Individual issues at each dealer counter, as recorded in details in the attached CD should be addressed for better relations with dealers

and improving sales of washing machines and microwave ovens and the after sales service

APPENDIX 1
QUESTIONNAIRES

FOR ONIDIAN DEALER/SUB DEALER SURVEY S. No Name: .. Area: . Address: .

DEALER PROFILE (i) TV (ii) Which ONIDA Products do you deal in? LCD AC DVD P MOBILES WM MO

Choose the category you belong to in your dealings with ONIDA? (a) (b) (c) DIRECT DEALER SUB-DEALER (Mention your distributor ..) DISTRIBUTOR

(iii) What category you belong to in your dealings with other companies? (a) (b) Same as for ONIDA Different

If Different, Specify:

LG SAMSUNG ..WHIRLPOOL .. IFB .. VIDEOCON OTHERS (iv) How would you rate your overall relations and satisfaction in dealings with the company? 1=Excellent (v) 2=Good 3=Satisfactory 4=Poor 5=Very Poor

Whats your annual Turnover? (a) Above 10 crore (b) 5 crore 10 crore (c) 2 crore 5 crore (d) Less than 2 crore

Kindly Provide Approximate figures regarding sales (in volume) of the following products: PRODUCT ANNUAL SALE AVERAGE PRICE TOTAL REV. GRAND TOTAL TV LCD DVD REFRIGERATOR AC WM MO OTHERS

CATEGORY =

QUESTIONNAIRE FOR WASHING MACHINES

1)

Do you deal in Washing Machines? YES NO

Proceed if you deal in washing machines

2)
LG

Which of the following brand (s) of washing machines do you deal in? SAMSUNG WHIRLPOOL VIDEOCON IFB GODREJ

OTHERS

ONIDA

3) 4)

If not ONIDA washing machines, Specify Reasons . What kind of washing machines sells most in your area? Semi-Automatic Fully Automatic-Top Load

Fully-Automatic-Front load

5)

What Capacity of Washing Machines do people usually prefer to buy here? 5.5 kg 6 kg 6.2 kg 6.5 kg

6.8 kg

7 kg

7+

6)

How would you rank the following washing machine brands in terms of the given criteria? CRITERIA LG SA FA SAMSUNG WHIRLPOOL VIDEOCON IFB OTHERS ONIDA

ANNUAL SALES

OVERALL QUALITY/DURABILITY PRODUCT LOOK PRICE MIX PROFITABILITY PRODUCT PLACEMENT PROMOTION MIX

AFTER SALES SERVICE Proceed if you deal in ONIDA Washing Machines

7)

Which models of ONIDA Washing machines do you have? . .

8) In comparison with other brands, how would you rate the ONIDA Washing Machines in terms of overall product attributes? 1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any

9) 10)

For customers who buy ONIDA WM, what features make ONIDA Washing Machines saleable? .. For customers who do not buy ONIDA WM, what are the main reasons to prefer other brands over ONIDA Washing Machines?

11) How would you rate the ONIDA Washing Machines in terms of pricing, as perceived by customers? 1=Lowest Prices 2= Reasonable 3= At Par with Others 4= High Price

5=Unreasonable

Comments, if any

12) As compared to other brands, how would you rate the ONIDA Washing Machines in terms of discounts/display schemes offered? 1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any 13) When compared with other brands, is the product placement done by ONIDA in time and in accordance with customer demand? 1= Always 2= Often 3= Less Often 4= Rarely 5=Very Rarely Comments, if any

14) As compared to other brands, how would you rate the ONIDA Washing Machines in terms of overall profitability? 1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any .. As compared to other brands, how would you rate ONIDA WM in terms of the following elements? Criteria 1=Excellent 2=Good 3= Satisfactory In store Promotions (Glow sign Boards, POPs, etc) Demonstrations/Live activities at store Live activities in the City Local Ads (Radio, Newspaper, etc) Customer Product Awareness

15)

4=Poor

5=Very Poor

16) How would you rate the performance of the ONIDAs on shop floor/in house demonstrators for WM? 1=Excellent 2=Good 3=Satisfactory 4=Poor

5=Very Poor

Comments, If Any.. How would you rate your communication and interactions with the sales executive of ONIDA for selling washing machines? (timely supply of pricing lists, scheme lists, brochures, upward communication of complaints, timely response to problems faced) 1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor Comments, If Any

17)

18)

Kindly provide the following data, with reference to your store: SA FA-FL FA-TL TOTAL

ANNUAL SALES OF WM (FY 2009-2010) Annual Sales of ONIDA WM (2009-2010) Total Number of Machines currently on Display Number of ONIDA Machines on Display

19)

What are the main issues being faced by you in dealing with or selling ONIDA WM? .

20)

What would be your suggestions to improve the market share of ONIDA Washing Machines? .

QUESTIONNAIRE FOR MICROWAVE OVENS 1) Do you deal in Microwave Ovens? YES NO

Proceed if you deal in Microwave Ovens 2) LG If yes, which of the following brand (s) of Microwave Ovens do you deal in? SAMSUNG WHIRLPOOL KENSTAR IFB OTHERS ONIDA

3)

If not ONIDA microwave ovens, Specify REASON. .

How would you rank the following microwave oven brands in terms of the given criteria? CRITERIA LG SAMSUNG WHIRLPOOL KENSTAR ANNUAL SALES OVERALL QUALITY PRODUCT LOOK PRICE MIX PROFITABILITY PRODUCT PLACEMENT PROMOTION MIX AFTER SALES SERVICE

4)

IFB

OTHERS

ONIDA

5)
SOLO

What kind of microwave oven sell most in your area? GRILL

CONVECTION

6)

What Capacity of Microwave Ovens do people usually prefer to buy here? 20L 21 L 25 L 26 L

28 L

28 +

Proceed if you deal in ONIDA Microwave Ovens 7) Which models of ONIDA Microwave Ovens do you have? ..

8) In comparison with other brands, how would you rate the ONIDA Microwave Ovens in terms of overall product attributes? 1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any 9) In case of customers who finally buy ONIDA MO, what features make the ONIDA MO saleable? .. 10) For customers who do not buy ONIDA MO, what are the main reasons to prefer other brands over ONIDA Microwave Ovens? . 11) How would you rate the ONIDA Microwave Ovens in terms of pricing, as perceived by customers? 1=Lowest Prices 2= Reasonable 3= At Par with Others 4= High Price 5=Unreasonable

Comments, if any

12)As compared to other brands, how would you rate the ONIDA Microwave Ovens in terms of display schemes offered? 1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any

13) When compared with other brands, is the product placement done by ONIDA in time & in accordance with customer demand? 1= Always 2= Often 3= Less Often 4= Rarely 5=Very Rarely Comments, if any

14)As compared to other brands, how would you rate the ONIDA Microwave Ovens in terms of overall profitability? 1=Excellent 2=Good 3=Satisfactory 4=Poor 5=Very Poor
Comments, if any .. 15) As compared to other brands, how would you rate ONIDA MO in terms of the following elements? Criteria 1=Excellent 2=Good 3= Satisfactory In store Promotions (Glow sign Boards, POPs, etc) Demonstrations/Live activities at store Live activities in the City Local Ads (Radio, Newspaper, etc) Customer Product Awareness 4=Poor 5=Very Poor

16)How would you rate the performance of the ONIDAs on shop floor/in house demonstrators for MO? 1=Excellent 2=Good 3=Satisfactory 4=Poor

5=Very Poor

Comments, If Any .. 17) Are you and the customers aware of the cooking classes conducted presently by the company? YES NO

18)How would you rate the effectiveness of these cooking classes in terms of time and venue? 1=Excellent 2=Good 3=Satisfactory

4=Poor

5=Very Poor

Comments, If Any

19)How would you rate your communication and interactions with the sales executive of ONIDA in selling MO? 1=Excellent 2=Good 3=Satisfactory 4=Poor

5=Very Poor

Comments, If Any . 20) Kindly provide the following data, with reference to your store: Solo ANNUAL SALES OF MO (FY 2009-2010) Annual Sales of ONIDA MO (FY 2009-2010) Total Number of Ovens currently on Display Number of ONIDA Ovens on Display DISPLAY SPACE Visibility Position of WM/MO in store Grill Convection TOTAL

21)What are the main issues being faced by you in dealing with or selling ONIDA MO? . 22)What would be your suggestions to improve the market share of ONIDA Microwave Ovens?

ONIDIAN DEALERS/ ONIDIAN CUSTOMERS SURVEY FOR ANALYSING CUSTOMER SATISFACTION IN AFTER SALES SERVICE OF ONIDA Rate Overall Customer Satisfaction In After Sales Service of Onida 1=EXCELLENT 2=GOOD 3=MODERATE 4=POOR 5=VERY POOR

Rate the following aspects of after sales service of ONIDA on a scale of 1-5, in terms of your/customers satisfaction. (1=Extremely Satisfied; 2=Satisfied; 3=Neutral; 4=Less Satisfied; 5=Unsatisfied) FACTORS (INDEPENDENT VARIABLES) ASPECT OF AFTER-SALES SERVICE Reception of Proper Invoice/Delivery Papers Transfer of Product to your place Reliability in Delivery Times Quality of Product when delivered at home Quality of the product packaging when delivered Accurate Information about installation Time elapsed between delivery and installation Attentiveness of installation personnel to avoid damage Advice and demo/instructions given by technician ONIDAs response to complaints Time taken by ONIDA to respond to complaints 1 2 3 4 5 Comments if any

DELIVERY

INSTALLATION

WARRANTY

Chance of repeat complaint ; satisfaction after complaint resolution Response time to attend warranty claim Time taken to rectify failed item Ready Availability of Spare Part Dealer Repair Quality outside warranty Claim TOTAL

Average Customer Satisfaction Level = ./16 = . ON SCALE OF 5 OTHER COMMENTS:

FOR NON-ONIDIAN DEALER/SUB DEALER SURVEY: Name: . Area: Address: DEALER PROFILE (i) TV Which Products do you deal in? LCD AC DVD P MOBILES REFRIGERATORS WM MO

(ii)

Choose the category you belong to in your dealings with the companies?

(a) DIRECT DEALER ..

(b)

(c)

SUB-DEALER .. DISTRIBUTOR ..

(iii) Whats your annual Turnover? (a) Above 10 crore (b) 5 crore 10 crore (c) 2 crore 5 crore (d) Less than 2 crore

Kindly Provide Approximate figures regarding sales (in volume) of the following products: PRODUCT ANNUAL SALE AVERAGE PRICE TV LCD DVD REFRIGERATOR AC WM MO OTHERS

TOTAL REV. GRAND TOTAL

CATEGORY

QUESTIONNAIRE FOR MICROWAVE OVENS 1) Do you deal in Microwave Ovens? YES NO

Proceed if you deal in Microwave Ovens 2) LG 3) If yes, which of the following brand (s) of Microwave Ovens do you deal in? SAMSUNG WHIRLPOOL KENSTAR IFB OTHERS

How would you rank the following microwave oven brands in terms of the given criteria? CRITERIA LG SAMSUNG WHIRLPOOL KENSTAR ANNUAL SALES OVERALL QUALITY/DURABILITY PRODUCT LOOK PRICE MIX (in terms of MOP) PROFITABILITY (PROFIT MARGINS) PRODUCT PLACEMENT PROMOTION MIX AFTER SALES SERVICE

IFB

OTHERS

ONIDA

4)
SOLO

What kind of microwave oven sells most in your area? GRILL

CONVECTION

5)

What Capacity of Microwave Ovens do people usually prefer to buy here? 20L 21 L 25 L 26 L

28 L

28 +

QUESTIONNAIRE FOR WASHING MACHINES

6)

Do you deal in Washing Machines? YES NO

Proceed if you deal in washing machines 7) LG If yes, which of the following brand (s) of washing machines do you deal in? SAMSUNG WHIRLPOOL VIDEOCON IFB OTHERS

How would you rank the following washing machine brands in terms of the given criteria? CRITERIA LG SAMSUNG WHIRLPOOL VIDEOCON ANNUAL SA SALES FA OVERALL QUALITY/DURABILITY PRODUCT LOOK PRICE MIX (in terms of MOP) PROFITABILITY (PROFIT MARGINS) PRODUCT PLACEMENT PROMOTION MIX AFTER SALES SERVICE

8)

IFB

OTHERS

ONIDA

9) What kind of washing machines sells most in your area? Semi-Automatic Fully Automatic-Top Load
10) What Capacity of Washing Machines do people usually prefer to buy here? 5.5 kg 6 kg 6.2 kg 6.5 kg

Fully-Automatic-Front load

6.8 kg

7 kg

7+

11) Why dont you deal with ONIDA, Specify REASON ..

12) What would be your suggestions or expectations to start business with the company in any product? ............................................................................................................................................................................................................................ ............................................................................................................................................................................................................................ .............................................................................................................................................................................................................

13) What would be your suggestions or expectations to start business with the company in WM and MO, in particular?

CONSUMER SURVEY FOR ANALYZING THE MOST IMPORTANT PARAMETERS FOR SELECTION OF A WM BRAND S. No . Area/City: Address: CUSTOMER PROFILE

1) Which of the following categories do you belong to? Please Tick Single, Living Alone Nuclear Family, Small kids Single, Living with friends Nuclear Family, grown up children Couple (Single Income) Nuclear Family, Retired Couple Couple (Double Income) Joint Family Mention the number of family members in your house ..

2) What is your annual income level? <1 Lakh 1-2 Lakh 2-3.5 Lakh 3) Yes Do you have a Washing Machine? No

3.5-5 Lakh

5 7 Lakh

Above 7 Lakh

4)
LG

If yes, which brand of Washing Machine do you use? SAMSUNG WHIRLPOOL VIDEOCON

IFB

GODREJ

ONIDA

OTHERS

5)

What type of WM do you use? Semi-Automatic Fully Automatic Top Load What is the capacity of your WM? 6 kg 6.2 kg

Fully Automatic Front Load

6) 5.5 kg

6.5 kg

6.8 kg

7 kg

7 and above

7) When did you buy your WM? In Last 6 months Last 6 mnths 1 year

1-2 years back

More than 2 years back

8)
Wife

Who made the final purchase decision? Husband

Kids

Grandparents

9) What was the reason for buying washing machine? (a) to replace maid (b) Save time (c) Festival season (d) Replacement of Old Machine (e) Marriage/Gift (f) Others .. 9) What medium inspired you most in choosing the brand you chose? (a) Local Ads in Newspaper (b) National Television Ads (c) Hoardings (d) Hoardings at nearby dealer store (e) References from Neighbors and friends (f) Dealers Recommendation (g) Others, Please specify

10) Have you heard of ONIDA Washing Machines and are you aware of the newest models in market? Yes No

11)

What is your perception about ONIDA products in general and Washing Machines in particular?

Rate the following criteria in terms of your preference when choosing a WM: CRITERIA FOR CHOOSING WASHING MACHINE Wash Technology Germ filters/Auto-Clean Higher Durability/Rust Free Body Space occupied by machine Motor Speed Capacity 1=Most Preferred 2=Preferred 3=Neutral 4=Least Preferred 5=Not Preferred Comments If Any

Fully Automatic features In-Built Heater/Steam Wash Auto soak User friendly Panel Aqua Store Aesthetic Finish/Transparent Lid Color Choice Wool Wash etc Brand Image Recommendation of friends and neighbors Advertisements Detailed self-explanatory Brochures Live Demonstration before Purchase Free Ad-On Products (set-up, pipe, tub, detergent subscription, etc.) Price Discount Offer/Financial Schemes Recommendation of dealers After Sales Service Proximity to Dealer CONSUMER SURVEY FOR ANALYZING THE MOST IMPORTANT PARAMETERS FOR SELECTION OF A MO BRAND 1) YES Do you have a MO? NO

2) (a)

If No, specify reason No need (b) High Price (c) Dont know how to use (d) other Reason.

3) Would you like to buy it, if you are taught about its use for free? YES, Definitely Yes, May be Dont Know Definitely Not Proceed if you use MO: 4) LG 5) Which brand of Microwave Oven do you use? SAMSUNG WHIRLPOOL KENSTAR What is the type of MO do you use? SOLO IFB GODREJ ONIDA OTHERS

GRILL

CONVECTION

Specify Reason..

6)
20 L

What is the capacity of your Microwave Oven? 21 L 25L

26L

28L

ABOVE 28L

7) When did you buy your MO? In Last 6 months Last 6 mnths 1 year 8)
Wife Who made the final purchase decision? Husband

1-2 years back

More than 2 years back

Kids

Grandparents

9) What was the reason for buying Microwave Oven? (a)To replace maid (b) Save time (c) Festival season (d) Replacement of Old Oven (e) Gift (f) Others .. Rate the following criteria in terms of your preference when choosing a Microwave Oven:

CRITERIA FOR CHOOSING MICROWAVE OVEN Multi ethnic Menus/Recipes Provided No. Of Recipes provided Child recipes Overall Look Color Choice (black/White/Silver) Space occupied by Oven Calorimeter/Health Features Capacity Display Size and Type Auto Defrost Anti-Bacteria Filters Steam Clean Brand Image Cooking Classes Detailed self-explanatory Brochures Live Demonstration before Purchase Free Ad-On Products (Recipe books, subscriptions, bowls, gloves, etc.) Recommendation of friends and neighbors Advertisements Price Discount Offer/Financial Schemes Recommendation of dealers Proximity to Dealer After Sales Service

1=Most Preferred

2=Preferred

3=Neutral

4=Least Preferred

5=Not Preferred

Comments if any

10) What medium inspired you most in choosing the brand you chose? (h) Local Ads in Newspaper (i) National Television Ads (j) Hoardings (k) Hoardings at nearby dealer store (l) References from Neighbors and friends (m) Dealers advice (n) Others, Please specify 11) What all do you prepare in your MO? . 12) Are you aware of all the functions of a MO? (a) Yes (b) No 13) Would be interested to participate in some sort of cooking classes and competitions if held in your society to increase awareness? . 14) Have you heard of ONIDA Microwave Ovens and are you aware of the newest models in market? (a) YES (b) NO 15) What is your perception about ONIDA Microwaves? ..

FORM TO ASSESS THE PRESENT SYSTEM IN OPERATION FOR PROVIDING AFTER SALES SERVICE IN ONIDA 1) How do you get to know customer complaints from all regions under this branch (Mention Channels of communications or the established system)? ..

2)

Do exclusive service centers exist for ONIDA products? If yes, what is the system or network? .

3)

Are the numbers and contacts of all the service centers/customer care dept communicated to customers and dealers? If yes, how is it communicated? .

4)

What proportion of customers complaint directly to company and how many report directly to the dealers or the service centers? .

5)

Do all dealers inform the service department about the complaints made regularly? .

6)

If yes, how often do these dealers report the complaints to the companydaily/monthly/weekly? .

7)

How do you respond? Send technician to customer or support to dealer, etc? Whats the action taken? .

8)

What is the technician force and how are they placed in different places? Pune: Sangli/Satara: Kolhapur: Ahmednagar: Goa: Sholapur:

9)

How are these technicians selected?

. 10) How does the company follow up with customers whether repair was done, whether satisfied? In short, how do you monitor your technicians regularly? . 11) Is there a system of taking feedbacks from customers when purchase is made during installation, and when repair is done? If yes, where are all these feedbacks submitted? Is a database maintained? . 12) How do you and how often do you follow up with dealers regarding the complaints being registered at their counters? Is there a person on regular visits to assure no complaints? . 13) Are the regular/satisfied customers followed to judge their satisfaction level with product and exceed their expectations? How do you keep in touch with these customers? . 14) How are the customers or dealers with long, pending unattended complaints dealt with? Is the follow up made by the company or you wait for them to follow you? . 15) How do you deal with non availability of spare parts?

16) If replacement is done, how often it is being done? How quick is the company in replacement? How many attempts are made in repair before replacing? . 17) Are the complaints that are attended to by the company communicated well to the dealer? . 18) How is the performance of the CC Dept people monitored, whether all complaints being satisfactorily answered to? . 19) How is the complaint database maintained and reviewed? . 20) Do you face any communication gap with the sales executives of the place of complaint? . 21) Is there any communication gap between the dealer and the company Service dept? . 22) What other difficulties do you face? .

23) What would be your suggestions? .

SALES EXECUTIVES SURVEY TO ASSESS THE CURRENT SCENARIO OF MARKET FOR ONIDA WM and MO Name of Sales Executive: Area Covered: -----------------------------------------------------------------------------------------------------------------------------------------1) Dealers dont prefer ONIDA WM Because: (a)Less margin (b) Not preferred by customers/slow-moving (c) Less Dealer Incentives (d) Other Reason 2) Dealers dont prefer ONIDA MO because: (a)Less margin (b) Not preferred by customers/slow-moving (c) Less Dealer Incentives (d) Other Reason 3) Rank all washing machine and microwave brands as per their preference by customers and dealers WM BRAND CUSTOMER DEALERS MO BRAND CUSTOMER PREFERENCE PREFERENCE PREFERENCE LG Samsung IFB Whirlpool LG Samsung Whirlpool Kenstar DEALERS PREFERENCE

Videocon Others Onida 4)

Others ONIDA

Select the product attributes that make the WM brand more saleable than other WM ATTRIBUTES that Make the Brand Sell BRAND Price Qua Technolog Look/ Fuzzy No Other Reference lity y Variet Logic/Display Sou (Specify y nd ) LG Samsung IFB Whirlpoo l Videocon Others Onida 5) Select the product attributes that make the MO brand more saleable than other BRAND ATTRIBUTES that Make the Brand Sell Pr Qualit Technolog Look/ Recipes/Demo Visibilit Cookin Other ice y y Variet s y g (Specify y classes ) LG Samsung Whirlpool Kenstar Others Onida

Fin. Schem es

Demo/Ad at Store/visibilit y

AFSS (Rank )

Referenc e

Fin. Scheme s

After sales service (Rank )

6) Rate various brands on scale of 1-5 in terms of conversion of their marketing efforts (advertising, promotions, and demos at stores) into sales (success in attracting customers)? BRAND Rate on Scale of 1-5 (1=Very Good, 2=Good, 3=Satisfactory, 4=Poor, 5=Very Poor) 1 2 3 4 5 COMMENTS LG Samsung IFB Whirlpool Videocon Others Onida 8) Rank the type of washing machine in order of preference and brand. Type of Rank in Rank in terms of WM Customer dealers pref. Preference (margins) LG SAMSUNG FA-FTL FA-TL SA

RANK WHIRLPOOL VIDEOCON OTHERS IFB ONIDA

Reason for Customer Pref. of FTL/TL/SA.. 9) Rank the type of microwave oven in order of preference and brand. Type of MO Rank in Rank in terms of Customer dealers pref. RANK Preference (margins) LG SAMSUNG WHIRLPOOL KENSTAR OTHERS Solo Grill Convection Reason for Customer Pref. of S/G/C..

ONIDA

10) Which factor makes ONIDA WM less preferred than other brands by end customers? (a) Price (b) Too many models to remember (c) Branding/model awareness (d) Quality (e) Look (f) Finance Schemes (g) Frequent Changes in Models (h) Capacity (i) Less Detailed Brochures (j) Any Other .. 11) Which factor makes ONIDA MO less preferred than other brands by end customers? (a) Price (b) Too many models to remember (c) Branding/model awareness (d) Quality (e) Look (f) Finance Schemes (g) Frequent Changes in Models (h) Capacity (i) Less Detailed Brochures (j) Any Other .. 12) Rate your satisfaction level in terms of your experience of working with the company (support, incentives, bonus, and employee satisfaction) on the scale of 1 to 5? 1) Excellent 2) Good 3) Satisfactory 4) Poor 5) Very Poor 13) Problem faced when dealing with dealers? .. 14) Any other Problem faced in selling ONIDA products? . 15) Any Suggestion for ONIDA to improve Market share of WM and MO..

INTERVIEW WITH THE BUSINESS MANAGER TO UNDERSTAND THE SALES AND DISTRIBUTION STRUCTURE OF THE COMPANY

1) Area

What is the distribution structure of the Pune Branch? Kindly fill in the following details. Sales Executive Jitu, Sachin Ankur Balwant Rajput Parag Sushil Dheeraj Patil Distributor (No./Name) For WM/MO Direct dealers (No.) No. Of sub dealers handled by each distributor

Pune City PCMC Kolhapur/Ratnagiri Sholapur/Osmanabad Sangli/Satara Goa Ahmednagar

2)

What are the eligibility criteria for selection of the channel partners?

Channel Partner Distributors Direct Dealers Sub-Dealers/Others

Sales Potential

Relevant Experience

Infrastructure

Capital Investment

3)

What training programs/awareness programs, awards, and evaluation systems done for various partners? TRAINING PROGRAMS EVALUATION SYSTEM/TERMINATION AWARDS/INCENTIVES/CER TIFICATES

Channel Partner

Distributors Direct Dealers SubDealers/Retailers

4)

How is the target setting done for distributors? Who does it, how often, and how much the distributor can negotiate or allowed to vary? .

5)

What are the margins provided to various dealers and distributors? Is it uniform or varies? Margin Comments, If any

Channel Partner Distributors Direct Dealers Sub-Dealers/Others

6)

How do distributors take care of the sub-dealer sales? Do they have their own sales rep.? If yes, how does the company train them to do so?

.. 7) What is the sales structure of the company?

8) (a)

What are the kinds of Channel Conflicts faced in the network? How is the undercutting done at the distributor level? . .

(b)

How is the undercutting or price variations done at the dealer level/retailer level? ..

(c)

Is there a problem of stock inflow between different categories of dealers and how is it dealt with? .

9)

What is the CREDIT POLICY of the branch? Credit to dealers given for days. CD of ..% not given if not paid within limited period. CD of .% given at time of delivery and % at time of payment etc. If payment not given during stipulated period % interest charged. ..

10) What is the stock policy of the company? Distributor supposed to maintain stock of .weeks, which equals to Rs. in monetary terms. Dealers supposed to maintain for .. Weeks equaling to Rs . .

11) What is the return policy of the company? The company takes return of the damaged or unsold stock after ..days/months. Replenishment of stock done with cash/etc..at end of .months

12) Promotion Policy? Dealer schemes etc notified to dealers aroundof every month. 13) Provide the following details regarding the ISD? Area No. of ISDs Eligibility criteria for ISDs Training for ISDs Eligibility of distributors to get ISDs Training of Demon. At Sub dealers/ other shops Evaluation method of ISDs

Pune City PCMC Kolhapur/Ratnagiri Sholapur/Osmanabad Sangli/Satara Goa Ahmednagar

14) What are the promotion efforts like for WM and MO? Question Who takes care of in store promotion activities? How is the performance monitored? Live demos at store and societies? How many Print Ads in local newspaper? How often? How many TV ad spots in local/national channels? Other promotion activities Display schemes for stores Washing Machine Microwave

APPENDIX 2 SPSS OUTPUT

Regression Analysis for Identifying the Various Factors affecting Sales of Washing Machines
Model Summary Adjusted R Model 1 R .844a R Square .712 Square .610 Std. Error of the Estimate 5.8557

ANOVAb Model 1 Regression Residual Total Sum of Squares 3568.645 1440.144 5008.789 df 15 42 57 Mean Square 237.910 34.289 F 6.938 Sig. .000a

a. Predictors: (Constant), Sales Exe Perf, Local Ads, Display space, In store promotion, Price, Technicians Perf, Customer Pdt Awareness, Product placement, Profitability, Display Schemes, ISD Performance, Product Attributes, Live activities, Dealer Relations, AFS b. Dependent Variable: Annual Sales

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Product Attributes Price Display Schemes Product placement Dealer Relations Profitability Customer Pdt Awareness In store promotion Display space Live activities Local Ads AFS ISD Performance Technicians Perf Sales Exe Perf B 59.051 1.357 -2.502 -2.062 -1.163 -.545 -.036 -3.336 -1.789 -.057 -.671 1.191 -4.082 -1.683 .403 1.746 Std. Error 9.484 1.839 1.878 1.652 1.079 1.554 1.936 1.663 1.163 .105 2.052 2.234 1.327 1.267 .999 1.390 .102 -.152 -.144 -.111 -.055 -.002 -.229 -.163 -.076 -.045 .075 -.509 -.159 .047 .172 Coefficients Beta t 6.226 .738 -1.333 -1.249 -1.078 -.351 -.018 -2.006 -1.539 -.543 -.327 .533 -3.077 -1.328 .403 1.256 Sig. .000 .465 .190 .219 .287 .727 .985 .051 .131 .590 .746 .597 .004 .191 .689 .216 .359 .528 .512 .644 .282 .586 .524 .613 .353 .357 .342 .250 .477 .510 .366 2.784 1.893 1.955 1.553 3.550 1.706 1.907 1.632 2.836 2.798 2.922 4.006 2.096 1.962 2.732 Collinearity Statistics Tolerance VIF

a. Dependent Variable: Annual Sales

Regression Analysis for Identifying the Various Factors affecting Sales of Microwave Ovens

Model Summary Model 1 R .887a R Square .786 Adjusted R Square .745 Std. Error of the Estimate 5.7615E0

ANOVAb Model 1 Regression Residual Total Sum of Squares 10024.594 2721.945 12746.538 df 16 82 98 Mean Square 626.537 33.194 F 18.875 Sig. .000a

a. Predictors: (Constant), Sales Exe perf, Cooking Classes, Display Price Schemes, AFS, ISD Performance, Local Ads, Display Space, Pricing, Technician Performance, Product Placement, In store promotion, Profitability, Live activities, Product Attributres, Customer Product Awareness, Dealer Relation b. Dependent Variable: Annual Sales

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Product Attributres Pricing Display Price Schemes Product Placement Dealer Relation Profitability Customer Product Awareness In store promotion Display Space Live activities Local Ads Cooking Classes AFS ISD Performance Technician Performance Sales Exe perf a. Dependent Variable: Annual Sales -2.078 .218 -4.075 .634 -.649 1.005 -1.299 -.039 1.492 .998 .053 1.590 1.272 .924 .933 .816 .966 .922 -.173 .292 -.213 .046 -.043 .072 -.109 -.003 .127 -2.083 4.080 -2.563 .498 -.703 1.078 -1.593 -.040 1.618 .040 .000 .012 .620 .484 .284 .115 .968 .109 .380 .508 .376 .308 .686 .584 .555 .420 .426 2.634 1.970 2.659 3.242 1.457 1.712 1.803 2.382 2.350 B 56.086 -1.388 -1.006 .122 -1.084 .056 -.964 -3.368 Std. Error 7.128 1.383 1.425 1.017 .860 .864 1.264 1.119 -.087 -.053 .008 -.099 .006 -.067 -.268 Coefficients Beta t 7.868 -1.004 -.706 .120 -1.260 .065 -.763 -3.009 Sig. .000 .318 .482 .905 .211 .948 .448 .003 .347 .465 .584 .426 .294 .337 .328 2.884 2.151 1.712 2.346 3.397 2.967 3.046 Collinearity Statistics Tolerance VIF

Regression Analysis for Identifying Various Factors Affecting Customer Satisfaction in After Sales Service

Model Summary Adjusted R Model 1 R .968a R Square .936 Square .919 Std. Error of the Estimate .25157

ANOVAb Model 1 Regression Residual Total Sum of Squares 55.657 3.797 59.455 df 16 60 76 Mean Square 3.479 .063 F 54.967 Sig. .000a

a. Predictors: (Constant), Dealer repair quality outside warranty claim, time elapsed btwn delivery and installation, Quality of product packaging when delivered, Availability of spare parts, Relibility of delivery times, Accurate info about installation, Attentiveness of technicians to avoid damage, Replacement of defective product, after 2-3 repairs, Reception of Invoice, Advice and demo/instructions given by technicians, Repeat complaints; Satisfaction after 1st resolution, Quality of product when delivered at home, Time taken to rectify failed item, Transfer of product , ONIDA's quality of response to complaints, Time taken to respond to complaints b. Dependent Variable: Customer Satisfaction in AFS

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Reception of Invoice Transfer of product Relibility of delivery times Quality of product when delivered at home Quality of product packaging when delivered Accurate info about installation time elapsed btwn delivery and installation Attentiveness of technicians to avoid damage Advice and demo/instructions given by technicians ONIDA's quality of response to complaints Time taken to respond to complaints Repeat complaints; Satisfaction after 1st resolution Time taken to rectify failed item Availability of spare parts Replacement of defective product, after 2-3 repairs Dealer repair quality outside warranty claim a. Dependent Variable: Customer Satisfaction in AFS -.056 .068 -.038 -.824 .413 .496 2.017 .093 .075 .068 .069 .086 .077 1.358 1.074 .180 .287 .265 .205 3.780 4.876 -.308 .174 -.283 -1.768 .082 .042 24.020 -.007 .093 -.006 -.073 .942 .163 6.126 .477 .147 .460 3.252 .002 .053 18.785 .326 .124 .305 2.629 .011 .079 12.607 .087 .071 .086 1.225 .226 .216 4.633 .093 .077 .083 1.201 .234 .220 4.536 -.064 .249 .091 .079 -.042 .234 -.704 3.141 .484 .003 .302 .191 3.316 5.235 -.421 .127 -.241 -3.324 .002 .202 4.958 B -.105 .081 .126 -.049 .344 Std. Error .284 .097 .159 .138 .119 .054 .085 -.028 .210 Coefficients Beta t -.369 .829 .796 -.351 2.895 Sig. .714 .411 .429 .727 .005 .250 .094 .166 .202 4.005 10.614 6.030 4.940 Collinearity Statistics Tolerance VIF

For detailed SPSS Outputs, kindly refer to the Attached CD.